The Following Is a Partially Completed Departmental Expense Allocation Spreadsheet

question 25

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. $\begin{array}{lcccc}&\text { Purchasing }& \text { Maintenance }&\text { Fabrication }& \text { Assembly }\\ \text { Operating costs } & \$ 32,000 & \$ 18,000 & \$ 96,000 & \$ 62,000 \\\text { No. of purchase orders } && & 16 & 4 \\\text { Sq. ft. of space } & & &3,300 & 2,700\end{array}$

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

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Par

A value assigned the shares of capital stock and stated on the stock certificate.

Dividend

A portion of a company's earnings distributed to its shareholders, typically in cash or additional shares.

Dividend Per Share

The sum of money paid by a company to its shareholders, divided by the total number of shares outstanding, usually expressed as a dollar amount per share.