Reference: 22_03
Bridgestreet, Inc $\begin{array}{llll}& \text { Cutting: } \$ 70,666 & \text { Assembling: } \$ 70,666 & \text { Finishing: } \$ 70,666 \\\end{array}$

question 67

Multiple Choice

Reference: 22_03
Bridgestreet, Inc. has three operating departments: Cutting, Assembling, and Finishing. Cutting has 5,000 employees and occupies 15,000 square feet. Assembling has 4,000 employees and occupies 12,000 square feet. Finishing has 1,000 employees and occupies 23,000 square feet. Indirect factory costs for the current period were Administrative $170,000 and Maintenance $212,000. Administrative costs are allocated to operating departments based on the number of workers and maintenance costs are allocated to operating departments based on square footage occupied.
-Based on the above data,determine the maintenance cost allocated to each operating department of Bridgestreet,Inc.
A. $\begin{array}{llll}& \text { Cutting: } \$ 70,666 & \text { Assembling: } \$ 70,666 & \text { Finishing: } \$ 70,666 \\\end{array}$
B. $\begin{array}{llll}& \text { Cutting: } \$ 15,000 & \text { Assembling: } \$ 12,000 & \text { Finishing: } \$ 23,000 \\\end{array}$
C. $\begin{array}{llll}& \text { Cutting: } \$ 63,600 & \text { Assembling: } \$ 50,880 & \text { Finishing: } \$ 97,520 \\\end{array}$
D. $\begin{array}{llll}& \text { Cutting: } \$ 127,333 & \text { Assembling: } \$ 127,333 & \text { Finishing: } \$ 127,333 \\\end{array}$
E. $\begin{array}{llll} & \text { Cutting: } \$ 115,000 & \text { Assembling: } \$ 91,680 & \text { Finishing: } \$ 175,720\end{array}$

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Definitions:

Productivity

The assessment of how effectively a person, machine, factory, or system can transform inputs into valuable outputs.

Labor Input

Refers to the total hours worked or the number of employees engaged in production in the economy.

Goods and Services

The tangible products (goods) and intangible activities (services) that satisfy human wants and needs and are offered in the market.

Market Economy

An economic system in which production and prices are determined by unrestricted competition between privately owned businesses.