Question 30 Not yet answered Points out of 3 Walsh Construction has two division

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Question 30 Not yet answered Points out of 3 Walsh Construction has two divisions Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $58,000 annually and one salaried estimator who is paid $52,000 annually. The corporate office has two office administrative assistants who are paid salaries of 38,000 and $31,000 annually. The president's salary is $127,000 How much of these salaries are common fixed expenses? queston Select one a $196,000 O b.$306,000 C. $110,000 d, $127,000 Previous page Next page

Explanation / Answer

a. $196000 ,

Common fixed expenses = office administrative assistants [$38000 + $31000] + president's salary of $127000

= $69000 + $127000

= $196000

Note:- Common fixed expenses are not traceable and cannot be allocated into one division or segment . It has to be incurred as a whole

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