The Following Is a Partially Completed Lower Section of a Departmental

question 49

Multiple Choice

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland.It reports the total amounts of direct and indirect expenses for the 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.

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Definitions:

Manufacturing Overhead

All the indirect costs associated with the production process, such as the costs of utilities, maintenance, and factory equipment.

Cost of Goods Sold

The expenses directly associated with manufacturing the products a company sells, which cover both the materials and labor costs.

Balance Sheet

A financial statement that shows the assets, liabilities, and equity of a company at a specific point in time.

Spreadsheet

A digital tool that allows users to organize, calculate, analyze, and visually present data in a tabular format.