Gabritz, Incorporated Has a Maintenance Department That Provides Services to the Company's

question 243

Essay

Gabritz, Incorporated has a maintenance department that provides services to the company's two operating departments. The variable costs of the maintenance department are charged on the basis of the number of maintenance hours logged in each department. Last year, budgeted variable maintenance costs were $7.50 per maintenance hour and actual variable maintenance costs were $7.80 per maintenance hour.The budgeted and actual maintenance hours for each operating department for last year appear below:
Required: a. Compute the amount of variable maintenance department cost that should have been charged to each operating department at the end of the year for performance evaluation purposes.b. Compute the amount of actual variable maintenance department cost that should NOT have been charged to the operating departments at the end of the year for performance evaluation purposes.

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Definitions:

Future Possible Activities

Activities or tasks that individuals or groups might undertake in the future, which are currently considered as options or plans.

Cognitive Responses

The mental reactions and thoughts that arise in response to external stimuli, forming the basis of attitudes, beliefs, and actions.

Nonspecific-Action Tendencies

General predispositions to act in a certain way without a precise or direct motive.

Broaden-And-Build Tendencies

A theory suggesting that positive emotions expand an individual's attention and mindset, leading to increased creativity, problem-solving abilities, and personal growth.