Able Company has two operating (production) departments: Assembly and Fabricatin

Question

Able Company has two operating (production) departments: Assembly and Fabricating. Assembly has 150 employees and occupies 43,000 square feet; Fabricating has 150 employees and occupies 29,000 square feet. Indirect factory expenses for the current period are as follows:

Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The total amount of indirect factory expenses that should be allocated to the Assembly Department for the current period is (Do not round your intermediate calculations and round your final answer to the nearest whole dollar amount):

$109,000.

$59,125.

$39,500.

$99,625.

$98,625.

Able Company has two operating (production) departments: Assembly and Fabricating. Assembly has 150 employees and occupies 43,000 square feet; Fabricating has 150 employees and occupies 29,000 square feet. Indirect factory expenses for the current period are as follows:

Explanation / Answer

CALCULATION OF TOTAL INDIRECT EXPENSES ALLOCABLE TO ASSEMBLY DEPARTMENT: Administration Expenes (79000*150/300) $ 39500 Maintenance Expenses (99000*43000/72000) $ 59125 $ 98625

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.