(Appendix 11B) Nafth Company Has an Equipment Services Department That

question 11

Multiple Choice

(Appendix 11B) Nafth Company has an Equipment Services Department that performs all needed maintenance work on the equipment in the company's Fabrication and Assembly Departments. Costs of the equipment Services Department are charged to the Fabrication and Assembly Departments on the basis of direct labor-hours. Data on direct labor-hours for last year follow:
For the year just ended, the company budgeted its variable maintenance costs at $210,000 for the year. Actual variable maintenance costs for the year totaled $255,000.
-For performance evaluation purposes,how much of the $255,000 of actual variable maintenance cost should be charged to the Assembly Department at the end of the year just ended?

• A) $182,143
• B) $175,312
• C) $165,000
• D) $178,500

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Definitions:

Join Wires

The process of connecting two or more electrical wires together to ensure a continuous flow of electricity.

Electrical Resistance

A measure of the opposition to the flow of electric current through a conductor, resulting in electrical energy being converted into heat.

Ohms

The unit of electrical resistance, representing the resistance between two points of a conductor when a voltage of one volt produces a current of one ampere.

Circuit Protection

Devices such as fuses, fuse links, and circuit breakers in an electrical circuit that stop the flow of electricity in the event that a fault occurs in the circuit. These help to protect people from injury and prevent damage to the vehicle’s electrical system.