Determine the maintenance cost allocated to each operating

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Reference no: EM131213577

Bridgestreet, Inc. has three operating departments: Cutting, Assembling, and Finishing. Cutting has 4,000 employees and occupies 33,000 square feet. Assembling has 3,200 employees and occupies 24,000 square feet. Finishing has 800 employees and occupies 53,000 square feet. Indirect factory costs for the current period were Administrative $470,000 and Maintenance $587,500. 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: $195,833 Assembling: $195,833 Finishing: $195,833

B. Cutting: $33,000 Assembling: $24,000 Finishing: $53,000

C. Cutting: $176,250 Assembling: $128,182 Finishing: $283,068

D. Cutting: $352,500 Assembling: $352,500 Finishing: $352,500

E. Cutting: $317,250 Assembling: $30,764 Finishing: $509,523

Option A

Option B

Option C

Option D

Option E

Reference no: EM131213577

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