Able Company Has Two Operating (Production)departments: Assembly and Fabricating

question 134

Multiple Choice

Able Company has two operating (production) departments: Assembly and Fabricating.Assembly has 150 employees and occupies 44,000 square feet; Fabricating has 100 employees and occupies 36,000 square feet.Indirect factory expenses for the current period are as follows:
Administration $ 80,000
Maintenance $100,000
Administration is allocated based on workers in each department; maintenance is allocated based on square footage.The total amount of indirect factory expenses that should be allocated to the Assembly Department for the current period is:

• A)$ 48,000.
• B)$ 55,000.
• C)$103,000.
• D)$104,000.
• E)$110,000.

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