Blankenship Company operates a factory with two departments,X and Y.The utilities to heat and light the manufacturing facility would most likely be allocated to departments X and Y on the basis of:
A) Square footage occupied.
B) Machine hours.
C) Direct labor hours.
D) Units sold.

Question

Quizplus · Accepted Answer

Allocating utilities based on square footage occupied is the most appropriate method as it takes into account the amount of space each department is using and the corresponding amount of energy needed to heat and light that space. Machine hours, direct labor hours, and units sold do not necessarily reflect the amount of energy required to operate and maintain the facility.

Blankenship Company Operates a Factory with Two Departments,X and Y