Ice House Industries, Inc -Based on the Above Data, Determine the Maintenance Cost Allocated

question 77

Multiple Choice

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.
$\begin{array}{|l|c|c|c|}\hline & \begin{array}{c}\text { Cooking } \\\text { Department }\end{array} & \begin{array}{c}\text { Churning } \\\text { Department }\end{array} & \begin{array}{c}\text { Freezing } \\\text { Department }\end{array} \\\hline \begin{array}{r}\text { Number of } \\\text { employees }\end{array} & \begin{array}{r}2,940 \\\text { employees }\end{array} & 4,900 \text { employees } & 1,960 \text { employees } \\\hline \text { Square feet occupied } & 33,250 \mathrm{Sq} . \mathrm{Ft} . & 38,000 \mathrm{Sq} . \mathrm{Ft} & 23,750 \mathrm{Sq} . \mathrm{Ft} . \\\hline\end{array}$
-Based on the above data, determine the maintenance cost allocated to each operating department of Ice House Industries, Inc.
$\begin{array}{|l|l|l|l|}\hline \text { (A) } & \text { Cooking: } \$ 219,333 & \text { Churning: } \$ 219,333 & \text { Freezing: } \$ 219,333 \\\hline \text { (B) } & \text { Cooking: } \$ 230,300 & \text { Churning: } \$ 263,200 & \text { Freezing: } \$ 164,500 \\\hline \text { (C) } & \text { Cooking: } \$ 33,250 & \text { Churning: } \$ 38,000 & \text { Freezing: } \$ 23,750 \\\hline \text { (D) } & \text { Cooking: } \$ 32,666 & \text { Churning: } \$ 32,666 & \text { Freezing: } \$ 32,666 \\\hline (E) &\text { Cooking: } \$ 34,300 & \text { Churning: } \$ 39,200 & \text { Freezing: } \$ 24,500 \\\hline\end{array}$

• A) A Above.
• B) B Above.
• C) C Above.
• D) D Above.
• E) E Above.

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