Stumbo Company Has Two Production Departments, Cutting and Assembling, Served

question 125

Multiple Choice

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 variable maintenance costs allocated to the Cutting Department should be

• A) $80,000.
• B) $96,000.
• C) $64,000.
• D) $83,333.

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Definitions:

Controlling Appetite

The regulation of food intake, usually aiming to maintain a healthy weight or meet dietary goals.

Hypothalamus

A region of the brain that controls functions such as hunger, thirst, emotions, and the autonomic nervous system.

Regulating Eating

The process of controlling food intake and dietary habits for health, weight management, or psychological well-being.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, such as heartbeat and digestion.