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Boone Manufacturing Has Two Production Departments, Mixing and Finishing, Served

question 102

Multiple Choice

Boone Manufacturing has two production departments, Mixing and Finishing, served by one maintenance department. Budgeted fixed costs for the maintenance department for 20X3 were $20,000, and the variable cost per labour hour was $3.00. Other relevant data for 20X3 are as follows:
Boone Manufacturing has two production departments, Mixing and Finishing, served by one maintenance department. Budgeted fixed costs for the maintenance department for 20X3 were $20,000, and the variable cost per labour hour was $3.00. Other relevant data for 20X3 are as follows:    Actual maintenance department costs for 20X3 were $24,000 fixed and $50,000 variable. <sup>*</sup>in labour hours -The amount of variable maintenance costs allocated to the Finishing Department should be A)  $21,000. B)  $24,000. C)  $18,750. D)  $18,000. Actual maintenance department costs for 20X3 were $24,000 fixed and $50,000 variable.
*in labour hours
-The amount of variable maintenance costs allocated to the Finishing Department should be


Definitions:

Precising Definition

A definition that seeks to make more precise what was previously vague or fuzzy.

Precise Measurements

The act of determining the exact size, quantity, or degree of something using specific tools and methods.

Flexibility

The quality of being adaptable or variable, especially in the face of change or new circumstances.

Language

The method of human communication, either spoken or written, consisting of the use of words in a structured and conventional way.

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