Able Company has two operating (production)departments: Assembly and Fabricating.Assembly has 150 employees and occupies 44,000 square feet; Fabricating has 100 employees and occupies 36,000 square feet.Indirect factory expenses for the current period are as follows:
Administration $ 80,000
Maintenance $100,000
Administration is allocated based on workers in each department; maintenance is allocated based on square footage.The total amount of indirect factory expenses that should be allocated to the Assembly Department for the current period is:
A)$ 48,000.
B)$ 55,000.
C)$103,000.
D)$104,000.
E)$110,000.

Question

Quizplus · Accepted Answer

Administration $80,000 * 150 = $48,000
(150 + 100)
Maintenance $100,000 * 44,000 = 55,000
(44,000 + 36,000)
Total $103,000

Able Company Has Two Operating (Production)departments: Assembly and Fabricating