Bridgestreet, Inc. has three operating departments: Cutting, Assembling, and Finishing. Cutting has 4,000 employees and...
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Accounting
Bridgestreet, Inc. has three operating departments: Cutting, Assembling, and Finishing. Cutting has 4,000 employees and occupies 38,400 square feet. Assembling has 3,200 employees and occupies 27,600 square feet. Finishing has 800 employees and occupies 62,000 square feet. Indirect factory costs for the current period were Administrative $560,000 and Maintenance $700,000. Administrative costs are allocated to operating departments based on the number of workers and maintenance costs are allocated to operating departments based on square footage occupied.
Based on the above data, determine the maintenance cost allocated to each operating department of Bridgestreet, Inc.
A.
Cutting:
$233,333
Assembling:
$233,333
Finishing:
$233,333
B.
Cutting:
$38,400
Assembling:
$27,600
Finishing:
$62,000
C.
Cutting:
$210,000
Assembling:
$150,938
Finishing:
$339,063
D.
Cutting:
$420,000
Assembling:
$420,000
Finishing:
$420,000
E.
Cutting:
$378,000
Assembling:
$31,500
Finishing:
$610,313
Option E
Option B
Option D
Option C
Option A
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