The Maryville Construction Company occupies 90,200 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 17,400 --- 0.10 0.20 --- 0.20 0.50 S2 4,450 --- --- 0.30 0.30 --- 0.40 S3 8,900 0.20 0.20 --- 0.30 0.20 0.10 S4 4,450 0.20 0.30 0.20 --- 0.10 0.20 Finishing 24,750 --- --- --- --- --- --- Assembly 30,250 --- --- --- --- --- --- Rent paid for the area used is $724,000. How much rent is allocable to the assembly department using the direct method of allocation? Multiple Choice $325,800 $398,200 $344,386 $242,805
The Maryville Construction Company occupies 90,200 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 17,400 --- 0.10 0.20 --- 0.20 0.50 S2 4,450 --- --- 0.30 0.30 --- 0.40 S3 8,900 0.20 0.20 --- 0.30 0.20 0.10 S4 4,450 0.20 0.30 0.20 --- 0.10 0.20 Finishing 24,750 --- --- --- --- --- --- Assembly 30,250 --- --- --- --- --- --- Rent paid for the area used is $724,000. How much rent is allocable to the assembly department using the direct method of allocation? Multiple Choice $325,800 $398,200 $344,386 $242,805
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The Maryville Construction Company occupies 90,200 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 | 17,400 | --- | 0.10 | 0.20 | --- | 0.20 | 0.50 |
| S2 | 4,450 | --- | --- | 0.30 | 0.30 | --- | 0.40 |
| S3 | 8,900 | 0.20 | 0.20 | --- | 0.30 | 0.20 | 0.10 |
| S4 | 4,450 | 0.20 | 0.30 | 0.20 | --- | 0.10 | 0.20 |
| Finishing | 24,750 | --- | --- | --- | --- | --- | --- |
| Assembly | 30,250 | --- | --- | --- | --- | --- | --- |
Rent paid for the area used is $724,000.
How much rent is allocable to the assembly department using the direct method of allocation?
Multiple Choice
-
$325,800
-
$398,200
-
$344,386
-
$242,805
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