Reference: 22_04
Ice House Industries, Inc -Based on the Above Data,determine the Administrative Cost Allocated to Cooking

question 113

Multiple Choice

Reference: 22_04
Ice House Industries, Inc. has three operating departments: Cooking, Churning, and Freezing. Indirect factory costs for the current period were Administrative $560,000 and Maintenance $98,000. 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.
$$\begin{array} { | l | c | c | c | } \hline & \begin{array} { c } \text { Cooking } \\\text { Department }\end{array} & \begin{array} { c } \text { Churning } \\\text { Department }\end{array} &{ \begin{array} { c } \text { Freezing } \\\text { Department }\end{array} } \\\hline \begin{array} { l } \text { Number of } \\\text { employees }\end{array} & 2,940 \text { employees } & 4,900 \text { employees } & 1,960 \text { employees } \\\hline \text { Square feet occupied } & 33,250 \text { Sq. Ft. } & 38,000 \text { 5q. Ft } & 23,750 \text { Sq. Ft. } \\\hline\end{array}$$
-Based on the above data,determine the administrative cost allocated to each operating department of Ice House Industries,Inc.

Understand the concept of warranties and rights in insurance contracts.

Grasp the principle of risk transfer in insurance and the role of premiums.

Comprehend the variability of property insurance premiums with deductibles.

Recognize the effects of economic conditions on insurance policy loans.

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Definitions:

Corrective Action

A process or set of steps taken to identify, isolate, and rectify a problem or nonconformity.

Statesmanship

The skill, practices, and art of managing public affairs with wisdom, diplomacy, and integrity.

Consensus

A general agreement or the process of reaching such an agreement within a group, emphasizing collaborative decision-making.

Innovation

Generation of new and usable ideas; an important element of leadership performance. See creativity.