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Bridgestreet, Inc B
A) a Above

question 108

Multiple Choice

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)   Cutting: $70,666 Assembling: $70,666 Finishing: $70,666 (B)   Cutting: $15,000 Assembling: $12,000 Finishing: $23,000 (C)   Cutting: $63,600 Assembling: $50,880 Finishing: $97,520 (D)   Cutting: $127,333 Assembling: $127,333 Finishing: $127,333 E)   Cutting: $115,000 Assembling: $91,680 Finishing: $175,720\begin{array}{|l|l|l|l|}\hline \text { (A) } & \text { Cutting: } \$ 70,666 & \text { Assembling: } \$ 70,666 & \text { Finishing: } \$ 70,666 \\\hline \text { (B) } & \text { Cutting: } \$ 15,000 & \text { Assembling: } \$ 12,000 & \text { Finishing: } \$ 23,000 \\\hline \text { (C) } & \text { Cutting: } \$ 63,600 & \text { Assembling: } \$ 50,880 & \text { Finishing: } \$ 97,520 \\\hline \text { (D) } & \text { Cutting: } \$ 127,333 & \text { Assembling: } \$ 127,333 & \text { Finishing: } \$ 127,333 \\\hline \text { E) } & \text { Cutting: } \$ 115,000 & \text { Assembling: } \$ 91,680 & \text { Finishing: } \$ 175,720 \\\hline\end{array} b


Definitions:

Reduce Damages

Actions taken to minimize the amount of compensation required in a legal claim, often involving efforts to mitigate losses.

Breaches

Instances where parties fail to fulfill their obligations or violate the terms of a contract or agreement.

Duty

A moral or legal obligation to perform or refrain from performing a certain action.

Rescind

To revoke, cancel, or repeal a contract, agreement, or law, making it as though it never existed.

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