Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bridgestreet, inc. has three operating departments

Bridgestreet, Inc. has three operating departments: Cutting, Assembling, and Finishing. Cutting has 4,000 employees and...

60.1K

Verified Solution

Question

Accounting

Bridgestreet, Inc. has three operating departments: Cutting, Assembling, and Finishing. Cutting has 4,000 employees and occupies 38,400 square feet. Assembling has 3,200 employees and occupies 27,600 square feet. Finishing has 800 employees and occupies 62,000 square feet. Indirect factory costs for the current period were Administrative $560,000 and Maintenance $700,000. 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.

Based on the above data, determine the maintenance cost allocated to each operating department of Bridgestreet, Inc.

A. Cutting: $233,333 Assembling: $233,333 Finishing: $233,333
B. Cutting: $38,400 Assembling: $27,600 Finishing: $62,000
C. Cutting: $210,000 Assembling: $150,938 Finishing: $339,063
D. Cutting: $420,000 Assembling: $420,000 Finishing: $420,000
E. Cutting: $378,000 Assembling: $31,500 Finishing: $610,313

Option E

Option B

Option D

Option C

Option A

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students