Riggs Company has two production departments, Mixing and Finishing, served by one maintenance department. Budgeted fixed costs for the maintenance department were $30,000, and the variable cost per labor hour was $4.00. Other relevant data are as follows: $\begin{array}{lll}&\text { Mixing }&\text { Finishing }\
\text { Long-run capacity available }{ }^{*}&18,000&12,000\
\text { Budgeted } & 12,000 & 10,500 \
\text { Actual }^{*} & 15,000 & 9,000\\text { *in labor hours }
\end{array}$ Actual maintenance department costs were $36,000 fixed and $100,000 variable. The amount of fixed maintenance costs allocated to the Finishing Department should be:
A) $14,000
B) $18,000
C) $11,250
D) $12,000

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The Answer of Riggs Company has two production departments, Mixing and Finishing, served by one maintenance department. Budgeted fixed costs for the maintenance department were $30,000, and the variable cost per labor hour was $4.00. Other relevant data are as follows: $\begin{array}{lll}&\text { Mixing }&\text { Finishing }\
\text { Long-run capacity available }{ }^{*}&18,000&12,000\
\text { Budgeted } & 12,000 & 10,500 \
\text { Actual }^{*} & 15,000 & 9,000\\text { *in labor hours }
\end{array}$ Actual maintenance department costs were $36,000 fixed and $100,000 variable. The amount of fixed maintenance costs allocated to the Finishing Department should be:
A) $14,000
B) $18,000
C) $11,250
D) $12,000

Riggs Company Has Two Production Departments, Mixing and Finishing, Served