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

question 121

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:

Protestant North America

Regions in North America where Protestant Christianity is a dominant religious influence, reflecting in the culture and society.

Caribbean Island

Islands in the Caribbean Sea, noted for their diverse cultures, histories of colonialism, and roles in the African diaspora.

England

A country in Europe that is part of the United Kingdom, known for its rich history, monarchy, and contributions to culture and science.

John Hawkins

A 16th-century English naval commander and slave trader, notable for his role in the early years of the Atlantic slave trade.