DC Construction has two divisions: Remodeling and New Home Construction. Each di
ID: 2447758 • Letter: D
Question
DC Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $86,000 annually and one salaried estimator who is paid $48,000 annually. The corporate office has two office administrative assistants who are paid salaries of $52,000 and $38,000 annually. The president's salary is $156,000. How much of these salaries are common fixed expenses?
$156,000
$246,000
$90,000
$318,000
DC Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $86,000 annually and one salaried estimator who is paid $48,000 annually. The corporate office has two office administrative assistants who are paid salaries of $52,000 and $38,000 annually. The president's salary is $156,000. How much of these salaries are common fixed expenses?
$156,000
$246,000
$90,000
$318,000
Explanation / Answer
Calculation of salaries that are common fixed expenses:
Salaries of on-site supervisor and salaried estimator are traceable to each department separately and hence these are not common fixed expenses.
But Salaries of office administrative assistants (52000+38000) and president's salary (156000) are Common fixed expense.
Hence Total Common fixed expense = 52000+38000+156000= $246000
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