Use the Following Information to Answer the Following Questions

question 9

Multiple Choice

Use the following information to answer the following Questions
Aldo Industries, Inc. has two service departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly) . The company allocates Building Maintenance cost on the basis of square footage and believes that Building Maintenance provides more service than Human Resources. The square footage occupied by each department follows.

-Assuming use of the step-down method, over how many square feet would the Building Maintenance cost be allocated (i.e., spread) ?

• A) 19,000.
• B) 44,000.
• C) 50,000.
• D) 63,000.
• E) More information is needed to judge.

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Definitions:

Excess Demand

Excess demand occurs when the quantity demanded of a product or service exceeds the quantity supplied at the current price, leading to shortages.

Excess Supply

A market situation where the quantity of a good or service offered is greater than the quantity demanded by consumers.

Supply

The total amount of a product or service available for purchase at any given time in the market.

Hurricane

A tropical cyclone with winds exceeding 74 mph, typically characterized by rain, thunderstorms, and strong winds.