Maintenance Cost Is Allocated to Wakshaw's Three Producing Departments Based

question 9

Multiple Choice

Maintenance cost is allocated to Wakshaw's three producing departments based on the machine hours used in each department. The maintenance cost for June was $200,000. The three departments had the following usage for June: $\begin{array}{lll}\text { Denartment }& \text { Machine hours used }& \text {Direct lahor hours used }\\\hline\text { Assembly } & 600 & 2,000 \\\text { Fabrication } & 600 & 5,000 \\\text { Testing } & 800 & 3,000\end{array}$ How much maintenance cost should be allocated to the fabrication department for June?

• A) $60,000
• B) $100,000
• C) $66,667
• D) $6,000

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