Darren 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:Maintenance Department: Budgeted variable cost$2per caseBudgeted total fixed cost$830,000 Paints Division: Percentage of peak period capacity required 30% Actual cases 20,000 Stains Division: Percentage of peak period capacity required 70% Actual cases 63,000 For performance evaluation purposes, how much Maintenance
Department cost should be charged to the Paints Division at the end of the year?
A. $498,000.
B. $289,000.
C. $298,800.
D. $240,000.
Answer: B
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