Caruana 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 determined by the number of cases produced by the operating departments during the peak period. Data appear below:
-How much Maintenance Department cost should be allocated to the Stains Division at the end of the year?

Question

Caruana 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 determined by the number of cases produced by the operating departments during the peak period. Data appear below: 
-How much Maintenance Department cost should be allocated to the Stains Division at the end of the year?

Quizplus · Accepted Answer

The Answer of Caruana 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 determined by the number of cases produced by the operating departments during the peak period. Data appear below: 
-How much Maintenance Department cost should be allocated to the Stains Division at the end of the year?

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