Fox Company Has the Following Data Concerning the Machine-Hours in Its

question 44

Multiple Choice

Fox Company has the following data concerning the machine-hours in its operating departments: Fixed costs of the maintenance department are budgeted at $30,000 per year. The fixed maintenance costs are incurred in order to service long-run average demand. The actual fixed maintenance cost was actually $32,000. How much fixed maintenance cost should be charged to Department B at the end of the year for performance evaluation purposes?

• A) $12,000
• B) $14,400
• C) $15,000
• D) $18,000

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Definitions:

Apathetic Culture

An organizational culture characterized by a general lack of interest, enthusiasm, or concern among its members.

Performance

The act or process of carrying out a task or function, often measured against known standards of accuracy, completeness, and speed.

Organizational Ethics

A set of guiding principles and values that dictate the behavior and decision-making within an organization.

Ethical Intention

The deliberate aim or plan to act according to ethical principles and values, often involving considerations of fairness, honesty, and respect for others.