Birch Corporation's Maintenance Department provides services to the company's two operating division: the Consure Division and the
Question:
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
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen