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

ID: 2456348 • Letter: B

Question

Bridgestreet, Inc. has three operating departments: Cutting, Assembling, and Finishing. Cutting has 6,000 employees and occupies 29,400 square feet. Assembling has 4,800 employees and occupies 21,600 square feet. Finishing has 1,200 employees and occupies 47,000 square feet. Indirect factory costs for the current period were Administrative $410,000 and Maintenance $512,500. 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 preceding data, determine the administrative cost allocated to each operating department of Bridgestreet, Inc. A. Cutting: $136,667 Assembling: $136,667 Finishing: $136,667 B. Cutting: $6,000 Assembling: $4,800 Finishing: $1,200 C. Cutting: $307,500 Assembling: $307,500 Finishing: $307,500 D. Cutting: $205,000 Assembling: $164,000 Finishing: $41,000 E. Cutting: $461,250 Assembling: $369,000 Finishing: $92,250

Option A

Option B

Option C

Option D

Option E

Joint products A and B are produced in a single operation from Material M. Three hundred and thirty gallons of Material M, costing $935, produced 220 gallons of Product A, selling for $2.0 per gallon, and 110 gallons of Product B, selling for $6.0 per gallon.

If the $935 cost of the 330 gallons of Material M were to be allocated to the joint products in proportion to the number of gallons of each product produced, Product A's share would be:

$623

$330

$374

$935

The Footwear Department of Lee's Department Store had sales of $244,000, cost of goods sold of $152,100, indirect expenses of $16,050, and direct expenses of $31,700 for the current period. The Footwear Department's contribution to overhead as a percent of sales is:

75.3%

126.1%

18.1%

37.7%

24.7%

Explanation / Answer

PART_1 Particulars Cuuting Assembling Finishing Total No of Employees 6,000 4,800 1,200 12,000 Square Feet occupied 29,400 21,600 47,000 98,000 Administartive Exp(No of Employees) 205000 164000 41000 4,10,000 Maintenance Exp (Square Feet Occupied) 153750 112959.18 245790.82 5,12,500 Total Expenses Allocated 358750 276959.18 286790.82 Option-D is the Correct Answer PART-2:- Product-A Product-B Total Gallons Produced 220 110 330 Joint Cost Allocated 623.33 311.67 935 Option-A is the Correct Answer (623) Part-3:- Contribution(244,000-152,100) 91,900 Sales 2,44,000 Contribution as a % of Sales 37.66393443 Option-D is the correct answer (37.7%)

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

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

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