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:

Conceptual Skills

are the abilities to understand complex ideas and problems, see the big picture, and develop creative solutions.

Human Skills

The ability to work well with others, often considered essential for effective leadership and team collaboration.

Problem-solving Skills

The ability to engage in a process to define a problem, generate solutions, evaluate alternatives, and decide on a course of action.

Schedule A

A form used in the U.S. to itemize deductions on an individual's federal tax return.