Flamingos,Inc

question 75

Multiple Choice

Flamingos,Inc.has four departments.The Administrative Department costs are allocated to the other three departments based on the number of employees in each and the Maintenance Department costs are allocated to the Assembly and Packaging Departments based on their occupied space.Data for these departments follows: The total amount of the Administrative Department's cost that would eventually be allocated to the Packaging Department is:

• A)$4,800.
• B)$12,000.
• C)$10,000.
• D)$18,000.
• E)$13,000.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits.

Accounting Equation

A fundamental principle of accounting that states assets equal liabilities plus owners' equity, representing the financial position of a business.

Profit-And-Loss Financial Statement

A financial report that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year, indicating the company’s profit or loss.

Statement Of Retained Earnings

A financial document that outlines the changes in retained earnings for a company over a specific period, showing how much profit is reinvested in the business or distributed to shareholders.