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

question 63

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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Definitions:

Blackmail

The act of demanding payment or another benefit from someone in return for not revealing compromising or damaging information about them.

Building Code

Regulations established by local governments detailing the standards for construction and safety of buildings and structures.

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A minor crime that is punishable by a small fine and/or imprisonment for less than six months in a jail.

Foreign Corrupt Practices Act

A United States law that makes it illegal for U.S. citizens and entities to bribe foreign government officials for business purposes.