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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Definitions:

Stable Organization

An organization characterized by consistency, resilience, and reliability in its operations, structure, and management, leading to sustained performance over time.

Attitude

A settled way of thinking or feeling about something, typically reflected in a person's behavior.

Affect

Refers to the experience of feeling or emotion, an aspect of consciousness that involves subjective feelings and moods.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.