Samuel Company Has Two Production Departments, Mixing and Finishing, Served

question 89

Multiple Choice

Samuel Company has two production departments, Mixing and Finishing, served by one maintenance department.Budgeted fixed costs for the maintenance department were $40,000, and the variable cost per labor hour was $4.00.Other relevant data are as follows: $\begin{array}{lrr}&\text { Mixing}&\text { Finishing }\\\text { Long-run capacity available* } & 18,000 & 12,000 \\\text { Budgeted* } & 12,000 & 10,500 \\\text { Actual* } & 15,000 & 9,000\end{array}$ *in labor hours Actual maintenance department costs were $36,000 fixed and $100,000 variable.The amount of fixed maintenance costs allocated to the Mixing Department should be _____.

• A)$20,000
• B)$12,000
• C)$24,000
• D)$14,000

---

Definitions:

Expectancy

The belief or anticipation that a specific event or outcome will occur, often used in the context of motivation and behavior.

Junk Food

A category of food that is high in calories but low in nutritional content, often characterized by high levels of sugar, fat, and salt.

Freedom of Movement

The right or ability of individuals to travel and relocate freely within or between places without restriction.

Psychological Needs

Fundamental emotional or mental requirements necessary for wellbeing and effective functioning of an individual.