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  3. the maryville construction company occupies 86,300

The Maryville Construction Company occupies 86,300 square feet for construction of mobile homes. There are...

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Accounting

The Maryville Construction Company occupies 86,300 square feet for construction of mobile homes. There are two manufacturing departments, finishing and assembly, and four service departments labeled S1, S2, S3, and S4. Information relevant to Maryville is as follows:

Allocation
Department Area used S1 S2 S3 S4 Finishing Assembly
S1 17,930 --- 0.20 0.10 --- 0.10 0.60
S2 3,885 --- --- 0.20 0.20 --- 0.60
S3 8,600 0.10 0.10 --- 0.40 0.10 0.30
S4 3,885 0.30 0.20 0.30 --- 0.10 0.10
Finishing 23,400 --- --- --- --- --- ---
Assembly 28,600 --- --- --- --- --- ---

Rent paid for the area used is $721,000. How much rent would be charged to S4 using the direct method of allocation?

rev: 08_19_2019_QC_CS-174994

Multiple Choice

  • $51,932.

  • $32,458.

  • $117,298.

  • $36,050.

Answer & Explanation Solved by verified expert
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