Todd Company has two production departments called Assembly and Finishing. The maintenance department serves both production departments. Maintenance costs are allocated based on labor hours. Budgeted fixed costs for the maintenance department are $30,000. Budgeted variable costs for the maintenance department are $5.00 per labor hour. Other relevant data follow:

Capacity available	20,000 labor hours	15,000 labor hours
Capacity used	15,000 labor hours	9,000 labor hours

Actual maintenance department costs:

Fixed                                                                                                  $36,000

Variable                                                                                             $100,000

The amount of variable maintenance department costs allocated to the Finishing Department should be ________.

Answer rating: 100% (QA)

A 37500 Explanation The computation of the variable maintenance depa... View the full answer