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

question 32

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.
-How much (if any) of the $255,000 in variable maintenance cost should not be charged to the Fabrication and Assembly Departments?

• A) $0
• B) $15,000
• C) $45,000
• D) $60,000

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Definitions:

Social Sciences

A branch of science that deals with the institutions and functioning of human society and the interpersonal relationships of individuals as members of society.

Progressive Era

A period of widespread social activism and political reform in the United States from the 1890s to the 1920s, aimed at eliminating problems caused by industrialization, urbanization, immigration, and political corruption.

Booker T. Washington

Booker T. Washington was an influential African American educator, author, orator, and advisor to presidents of the United States in the late 19th and early 20th centuries, who advocated for African American advancement through education and entrepreneurship.

W.E.B DuBois

An American sociologist, historian, and civil rights activist who was a leading figure in the fight for African American rights and co-founder of the NAACP.