(Appendix 11B) Ghia Manufacturing Corporation Charges Its Maintenance Department's Service

question 37

Multiple Choice

(Appendix 11B) Ghia Manufacturing Corporation charges its Maintenance Department's service costs to two operating departments, Fabrication and Assembly. Charges are made on the basis of machine-hours. Information pertaining to machine-hours for the year follows:
The following costs pertain to the Maintenance Department:

-For performance evaluation purposes,how much of the Maintenance Department's variable cost should be charged to the Fabrication Department at year-end?

• A) $36,000
• B) $46,400
• C) $50,000
• D) $56,250

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