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Fox Company Has the Following Data Concerning the Machine-Hours in Its

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Fox Company has the following data concerning the machine-hours in its operating departments: Fox Company has the following data concerning the machine-hours in its operating departments:   Fixed costs of the maintenance department are budgeted at $30,000 per year. The fixed maintenance costs are incurred in order to service long-run average demand. The actual fixed maintenance cost was actually $32,000. How much fixed maintenance cost should be charged to Department B at the end of the year for performance evaluation purposes? A)  $12,000 B)  $14,400 C)  $15,000 D)  $18,000
Fixed costs of the maintenance department are budgeted at $30,000 per year. The fixed maintenance costs are incurred in order to service long-run average demand. The actual fixed maintenance cost was actually $32,000. How much fixed maintenance cost should be charged to Department B at the end of the year for performance evaluation purposes?


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