The Bolton Company operates a Health Care service department for its employees. The variable costs of this department are charged to the company's two operating departments, Assembly and Finishing, based on the number of employees in each department. The Health Care Department's total variable cost was budgeted at $55,000 for the past year; its actual total variable cost was $56,112. Additional data for the past year follow:

-For performance evaluation purposes, how much of the actual Health Care variable cost should not be charged to the operating departments at the end of the year?

Question

The Bolton Company operates a Health Care service department for its employees. The variable costs of this department are charged to the company's two operating departments, Assembly and Finishing, based on the number of employees in each department. The Health Care Department's total variable cost was budgeted at $55,000 for the past year; its actual total variable cost was $56,112. Additional data for the past year follow:

-For performance evaluation purposes, how much of the actual Health Care variable cost should not be charged to the operating departments at the end of the year?

Quizplus · Accepted Answer

The question does not provide enough information to determine which costs should not be charged to operating departments. Therefore, the only option available is to select the amount that should not be charged, which is $1,002 according to option C.

The Bolton Company Operates a Health Care Service Department for Its