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

question 54

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 maintenance cost allocated to each operating department of Ice House Industries,Inc.

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Definitions:

Motivation to Perform

The internal drive or incentive that propels individuals or groups to pursue and achieve specific goals with dedication and effort.

Ability to Perform

The capacity or competence of an individual or organization to execute tasks or achieve objectives effectively.

Picoeconomics

A branch of economic theory that explores the decision-making processes within an individual, particularly conflicts among different interests over time.

Future Benefits

Anticipated advantageous outcomes derived from current actions or investments.