Able Company Has Two Operating (Production) Departments: Assembly and Fabricating

question 113

Multiple Choice

Able Company has two operating (production) departments: Assembly and Fabricating. Assembly has 150 employees and occupies 44,000 square feet; Fabricating has 100 employees and occupies 36,000 square feet. Indirect factory expenses for the current period are as follows: Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The total amount of indirect factory expenses that should be allocated to the Assembly Department for the current period is:

• A) $48,000.
• B) $55,000.
• C) $103,000.
• D) $104,000.
• E) $110,000.

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