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Stumbo Company has two production departments, Cutting and Assembling, served by one maintenance department. Budgeted fixed costs for the maintenance department for 20X3 were $60,000, and the variable cost per labour hour was $2.00. Other relevant data for 20X3 are as follows:
Actual maintenance department costs for 20X3 were $64,000 fixed and $120,000 variable.
*in labour hours
-The amount of fixed maintenance costs allocated to the Assembling Department should be
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