Schaich Corporation's Maintenance Department provides services to the company's two operating divisions-the Paints Division and the Stains Division. The variable costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments. The fixed costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments during the peak period. Data appear below:
For performance evaluation purposes, how much Maintenance Department cost should be charged to the Stains Division at the END of the year?

Question

Schaich Corporation's Maintenance Department provides services to the company's two operating divisions-the Paints Division and the Stains Division. The variable costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments. The fixed costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments during the peak period. Data appear below: 
For performance evaluation purposes, how much Maintenance Department cost should be charged to the Stains Division at the END of the year?

Quizplus · Accepted Answer

The Answer is D

Schaich Corporation's Maintenance Department Provides Services to the Company's Two