Budgeted fixed costs in Swasey company's Maintenance Department were $180,000; actual fixed costs in the department for the year were $186,000. The level of budgeted fixed costs in the Maintenance Department depends on peak-period requirements. The Milling Department requires one-third of the peak-period capacity and the Assembly Department requires two-thirds of peak-period capacity.
-How much fixed Maintenance Department cost should be charged to the Assembly Department at the end of the year?
A) $90,000
B) $124,000
C) $135,000
D) $120,000
Correct Answer:
Verified
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