Bridge street, Inc. has three operating departments: Cutting, Assembling and Fin

Question

Bridge street, Inc. has three operating departments: Cutting, Assembling and Finishing. Cutting has 6,500 employees and occupies 18,000 square feet. Assembling has 5,500 employees and occupies 11,000 square feet. Finishing has 2,500 employees and occupies 24,000 square feet. Indirect factory costs for the current period were Administrative, $175,000 and Maintenance, $214,000. 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 Bridge (rounded) Cutting: $72,679 Assembling: $44,415 Finishing: $96,906 Cutting: $175,000 Assembling: $3,182 Finishing: $214,000 Cutting: $71,333 Assembling: $71,333 Finishing: $71,333 Cutting: $18,000 Assembling: $11,000 Finishing: $24,000 Cutting: $58,333 Assembling: $58,333 Finishing: $58,333

Explanation / Answer

Cutting: $71,333 Assembling: $71,333 Finishing: $71,333

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