Baker Corporation has two operating departments, Machining and Assembly, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: The amount of the total office expenses that should be allocated to Assembly for the current period is:
A) $35,750.
B) $45,000.
C) $54,250.
D) $90,000.
E) $600,000.

Question

Quizplus · Accepted Answer

The correct allocation to Assembly is calculated based on the given allocation bases for each category of office expenses. Without the specific allocation bases and the total amounts for each category, a precise calculation cannot be provided. However, the correct answer is selected based on the information that would typically involve calculating the proportion of each expense category attributable to the Assembly department based on the relevant allocation base (e.g., square footage for rent, number of employees for salaries, or machine hours for utilities), and then summing these amounts to get the total office expenses allocated to Assembly.

Baker Corporation Has Two Operating Departments, Machining and Assembly, and an Office