The Maryville Construction Company occupies 105,800 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 18,600 --- 0.20 0.10 --- 0.10 0.60 S2 5,050 --- 0.40 0.40 0.20 --- --- S3 10,100 0.20 0.20 --- 0.30 0.20 0.10 S4 5,050 0.20 0.100.20 --- 0.30 0.20 Finishing 30,150 --- --- --- --- --- --- Assembly 36,850 --- --- --- --- --- --- Rent paid for the area used is $736,000. How much rent is allocable to the assembly department using the direct method of allocation? Multiple Choice $331,200. $404,800. $381,014. $256,348.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
The Maryville Construction Company occupies 105,800 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
18,600
0.20 0.10
0.10
0.60
---
---
S2
5,050
0.40 0.40
0.20
---
---
-- -
S3
10,100
0.20 0.20
0.30
0.20
0.10
---
S4
5,050
0.20 0.10 0.20
0.30
0.20
Finishing
30,150
---
Assembly
36,850
Rent paid for the area used is $736,000.
How much rent is allocable to the assembly department using the direct method of allocation?
Multiple Choice
$331,200.
$404,800.
$381,014.
$256,348.
Transcribed Image Text:The Maryville Construction Company occupies 105,800 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 18,600 0.20 0.10 0.10 0.60 --- --- S2 5,050 0.40 0.40 0.20 --- --- -- - S3 10,100 0.20 0.20 0.30 0.20 0.10 --- S4 5,050 0.20 0.10 0.20 0.30 0.20 Finishing 30,150 --- Assembly 36,850 Rent paid for the area used is $736,000. How much rent is allocable to the assembly department using the direct method of allocation? Multiple Choice $331,200. $404,800. $381,014. $256,348.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education