The Following Is a Partially Completed Departmental Expense Allocation Spreadsheet

question 10

Multiple Choice

The following is a partially completed departmental expense allocation spreadsheet for Brickland.It reports the total amounts of direct and indirect expenses for its four departments.Purchasing department expenses are allocated to the operating departments on the basis of purchase orders.Maintenance department expenses are allocated based on square footage.Compute the amount of Maintenance department expense to be allocated to Fabrication.

• A)$6,400.
• B)$9,900.
• C)$8,100.
• D)$9,000.
• E)$25,600.

---

Definitions:

Journal Entry

A record in the accounting journal that consists of a debit and credit entry and describes a business transaction.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated by dividing current assets by current liabilities.

Working Capital

The gap between a firm's immediate assets and its short-term obligations, reflecting the funds available for daily operations.

Quick Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its most liquid assets.