Wilson Trade School Allocates Administrative Costs to Its Respective Departments

question 59

Multiple Choice

Wilson Trade School allocates administrative costs to its respective departments based on the number of students enrolled,while maintenance and utilities are allocated per square feet of the classrooms.Based on the information below,what is the total amount allocated to the Automotive Department (rounded to the nearest dollar) if administrative costs for the school were $50,000,maintenance fees were $12,000,and utilities were $6,000?
Department Students Classrooms
Electrical............ 120 10,000 sq.ft.
                     Automotive……. 70 12,000 sq.ft.
Secretarial……… 50 8,000 sq.ft.
Plumbing………. 40 6,000 sq.ft .

• A)$ 0.
• B)$17,000.
• C)$18,500.
• D)$22,667.
• E)$30,000.

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Definitions:

Economic Power

The ability of an entity, whether a country, organization, or individual, to influence or control economic activities, markets, and resources, often correlating with wealth and production capabilities.

Overproduction

A situation where more goods are produced than can be sold, often leading to economic downturns or depressions.

Bland-Allison Act

The Bland-Allison Act, passed in 1878, was U.S. legislation requiring the federal government to purchase and coin a minimum amount of silver each month to inflate currency.

Sherman Silver Purchase Act

An 1890 United States federal law that increased the amount of silver the government was required to purchase every month, driving up the money supply and inflation.