Get correct answer with accounting question A manufacturing company has five departments: Assembly, Finishing,Packaging, Quality Control, and Shipping. The company incurs annual utilitycosts of $180,000 that benefit all departments. Square footage by departmentare:•.••Assembly: 15,000 sq ftFinishing: 8,000 sq ftPackaging: 12,000 sq ftQuality Control: 5,000 sq ftShipping: 10,000 sq ft••Total Square Footage: 50,000 sq ftHow much of the utility costs should be allocated to the Packagingdepartment based on square footage?

Step 1: Definition of Cost Allocation Based on Square FootageCost Allocation Based on Square Footage…

Answered: A manufacturing company has five…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ready Company has two operating production departments Assembly and Painting Assenoy his 250 employees and occuples 63,600 square feet Painong has 50 employees and occupies 42,400 square feet. The company has ingrect expenses that consist of administrative expenses of $93000 and maintenance expenses of $17000 Administrative expenses are atiocated based on the number of workers in each department and maintenance is located based on square footage. The wount of maintenance expenses that should be alocated to the Peting Department for the current period Maple Choty O O O $46000 $6500 300 1013000
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