All of Eva Enterprise's Operations Are Housed in One Building

question 113

Multiple Choice

All of Eva Enterprise's operations are housed in one building with the costs of occupying the building accumulated in a separate account. The total costs incurred in July amounted to $48,000. The company allocates these costs on the basis of square feet of floor space occupied. Administrative offices, sales offices, and factory operations occupy 9,000, 6,000, and 30,000 square feet, respectively. How much will be classified as a product cost for July?

• A)$9,600
• B)$6,400
• C)$16,000
• D)$32,000

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