Delta Railroad Has Two Operating Divisions--Freight and Passenger

question 14

Multiple Choice

Delta Railroad has two operating divisions--Freight and Passenger. The Maintenance Department serves both divisions. Variable Maintenance Department costs are budgeted at $12 per thousand miles. The fixed Maintenance Department costs are budgeted at $800,000 per year. The level of the fixed Maintenance Department costs are determined by the peak-period requirements. Data for last year follow:

During last year, the Maintenance Department actually incurred $650,000 in variable costs and $815,000 in fixed costs.
-For performance evaluation purposes, how much of the fixed Maintenance Department cost should be charged to the Freight Division at the end of the year?

• A)$480,000
• B)$440,000
• C)$472,000
• D)$50,000

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Definitions:

Electron Transport Chain

A series of protein complexes located in the inner membrane of mitochondria that facilitate the movement of electrons to generate ATP.

Electrons

Subatomic particles with a negative charge, found orbiting the nucleus of an atom, and crucial to chemical bonding and electricity.

Electrochemical Gradient

The combined difference in concentration and charge of ions across a membrane, driving the movement of ions through channels, critical for processes like muscle contraction and nerve transmission.

ATP

Adenosine triphosphate, a molecule that carries energy within cells for metabolism.