Tillman Is Building a Warehouse for Use in His Business

question 47

Multiple Choice

Tillman is building a warehouse for use in his business. The construction costs include the following:
?
$$\begin{array} { l r } \text { Direct labor } & \$ 35,000 \\\text { Direct materials } & 20,000 \\\text { Architect fees } & 5,000 \\\text { Interest on construction loan } & 3,000 \\\text { Depreciation of equipment used in construction } & 1,500 \\\text { Indirect Administrative costs during construction } & 2,000\end{array}$$
What is Tillman's basis in the warehouse?

• A)$60,000
• B)$61,500
• C)$63,500
• D)$64,500
• E)$66,500

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Definitions:

Focused Work Center

A designated area in a manufacturing facility dedicated to a specific process or set of tasks, aimed at improving efficiency and productivity.

Work Cell Layout

An arrangement of resources in a manufacturing environment to improve efficiency by grouping together all necessary equipment and workers for a specific process or product.

Manufacturing Applications

Software or systems designed to optimize and manage manufacturing processes, operations, and resources.

CRAFT

A skill in doing or making something, often with the hands, that involves a particular set of techniques and tools.