Quick Start Engines has two departments, Assembly and Testing. You are given the following information about the costs of 4 activities that occur at the manufacturing plant monthly: The above activities are used by the two departments as follows:
How much of the maintenance and cleaning costs will be allocated to Testing?
A) $25,000
B) $75,000
C) $100,000
D) $50,000

Question

Quizplus · Accepted Answer

The maintenance and cleaning costs are allocated based on the usage by the Testing department. If Testing uses 50% of the maintenance and cleaning activities, then $50,000 (which is 50% of the total $100,000) will be allocated to Testing.

Quick Start Engines Has Two Departments, Assembly and Testing