Tabarez 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$1,140,000 Actual total variable cost$239,400 Actual total fixed cost$1,157,980 Paints Division: Percentage of peak period capacity required 30%Budgeted cases 29,000 Actual cases 29,040 Stains Division: Percentage of peak period capacity
required 70%Budgeted cases 85,000 Actual cases 84,960 ?For performance evaluation purposes, how much Maintenance Department cost should be charged to the Stains Division at the end of the year?
A. $1,019,520
B. $1,041,416
C. $967,920
D. $989,002
Answer: C
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