Birch Corporation's Maintenance Department provides services to the company's two operating division: the Consure Division and the Commercial Division. The variable costs of the Maintenance Department are budgeted based on the number of units produced by the operating departments. The fixed costs of the Maintenance Department are determined by the number of units produced by the operating departments during the peak period. The two operating departments together produced 60,000

How much actual Maintenance Department cost should NOT be allocated to the operating divisions at the end of the year? (Choose the closest number)

a. $0

b. $1,030

c. $12,630

d. $11,600

E. None of the above

Transcribed Image Text:

Maintenance Department: Budgeted variable cost Budgeted total fixed cost Actual total variable cost Actual total fixed cost Percentage of peak period capacity required Budgeted units The percentage of units actually produced S 4.50 per unit $708,000 $281,600 $709,030 Consumer Division: 38% 29,000 46% Commercial Division 62% 59,000 54% Maintenance Department: Budgeted variable cost Budgeted total fixed cost Actual total variable cost Actual total fixed cost Percentage of peak period capacity required Budgeted units The percentage of units actually produced S 4.50 per unit $708,000 $281,600 $709,030 Consumer Division: 38% 29,000 46% Commercial Division 62% 59,000 54%

Answer rating: 100% (QA)

Budgeted variable cost 45 per unit Production 60000 units Budgeted variable cost 4... View the full answer