Trek, Inc. has two service departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly). The company allocates Building Maintenance cost on the basis of square footage and believes that Building Maintenance provides more service than Human Resources. The square footage occupied by each department follows.Human Resources7,000Building Maintenance11,000Machining20,000Assembly28,000Assuming use of the step-down method, over how many square feet would the Building Maintenance cost be allocated (i.e., spread)?
A. 48,000.
B. 66,000.
C. 55,000.
D. 18,000.
E. More information is needed to judge.
Answer: C
You might also like to view...
An activity with a slack time greater than zero?
a. Is a critical path activity b. Is a possible candidate for crashing c. Is both a critical path activity and a possible candidate for crashing d. Is neither a critical path activity nor a possible candidate for crashing
What is the amount of Hawaii's credit for employer-provided child care?
Hawaii, Inc., began a child care facility for its employees during the year. The corporation incurred
The Gramm-Leach-Bliley Act placed extensive new regulations on the banking industry
Indicate whether the statement is true or false.c
Which of the following statements about tangible long-lived assets is not correct?
A. All long-lived assets are depreciated as they are used in the business. B. The cost of a long-lived asset minus the Accumulated Depreciation is called the carrying value of the asset. C. Depreciation and maintenance are expenses associated with the use of tangible long-lived assets. D. Assuming no additions, replacements, or extraordinary repairs, the carrying value of a long-lived asset is never more than its original cost.