Vosquez Corporation\'s Maintenance Department provides services to the company\'
ID: 2482202 • Letter: V
Question
Vosquez Corporation's Maintenance Department provides services to the company's two operating divisions—the Paints Division and the Stains Division. The variable costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments. The fixed costs of the Maintenance Department are budgeted based on the number of cases produced by the operating departments during the peak-period. Data appear below:
For performance evaluation purposes, how much Maintenance Department cost should be charged to the Stains Division at the end of the year?
$502,770
$543,108
$527,890
$517,306
Maintenance Department: Budgeted variable cost $3 per case Budgeted total fixed cost $552,000 Actual total variable cost $213,900 Actual total fixed cost $566,980 Paints Division: Percentage of peak-period capacity required 35% Budgeted cases 21,000 Actual cases 21,010 Stains Division: Percentage of peak-period capacity required 65% Budgeted cases 48,000 Actual cases 47,990Explanation / Answer
Hey Dear Student !!
Answer would be $517306
Total Cost to the Stains Devision: Variable Cost + Fixed Cost
Variable cost:
Total Actual Cost/Total Actual Units of both Devisions X Actual Units of Stains Devision
213900/69000X47990
3.10 X 47990= $148769
Fixed Cost: 65% of Total Actual Cost
566980X65%= $368537
Total Cost:
148769+368537= $517306
Pleasure Teaching You !!
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.