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University Of Missouri St. Louis Operations And Supply Chain Management Assignment Help - Variable Maintenance Costs


Question - James Company has two production departments called Mixing and Finishing. The maintenance
department serves both production departments. budgeted fixed costs for the maintenance
department are $30,000. Budgeted variable costs for the maintenance department are $5.00 per labor
hour. Acutual maintenance department costs are $36,000 fixed and $100,000 variable. Other relevant
data follow:


Mixing , Finishing
_______________________________
Capacity available 20,000 labor hours, 15,000 labors hours
Capacity used 15,000 labor hours, 9,000 Labros hours





The amount of avariable maintenance department costs allocated to the Mixing department shoud be
______________.?

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