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Brrunno [24]
3 years ago
7

The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports

the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Assembly. Purchasing Maintenance Fabrication Assembly Operating costs $ 32,000 $ 18,000 $ 96,000 $ 62,000 No. of purchase orders 16 4 Sq. ft. of space 3,300 2,700 Multiple Choice $6,400. $8,100. $25,600. $9,900. $9,000.
Business
1 answer:
blagie [28]3 years ago
7 0

Answer:

The correct option is b. $8,100

Explanation:

Since the question was asked about the allocation of maintenance department expense to assembly and the maintenance department expense is based on the square footage.

So, the following equation should be used which is shown below:

= Maintenance department expense × assembly square foot space ÷ total sum of square foot space

where,

Maintenance department expense is $18,000

Assembly square footage is 2,700

And, the total sum of square foot space equals to

=  Fabrication square foot space + assembly square foot space

= 3,300 + 2,700

= 6,000

Now, put these values on the above equation.

So, the value would be equals to

= $18,000 × 2,700 ÷ 6,000

= $18,000 × 0.45

= $8,100

The other cost is irrelevant. Thus, it is ignored while computation.

Hence, the amount of Maintenance department expense to be allocated to Assembly is $8,100

Therefore, the correct option is b. $8,100

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Answer:

$48,000

Explanation:

<em>What should Swifty report as its Allowance for Doubtful Accounts at 12/31/20?</em>

<em />

Allowance for Doubtful Accounts 12/31/20 = Accounts receivable at 12/31 * Uncollectible percentage of Accounts receivable

Allowance for Doubtful Accounts 12/31/20 = $960,000 * 5%

Allowance for Doubtful Accounts 12/31/20 = $48,000

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igor_vitrenko [27]

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Answer:

Interest receivable 480 Interest revenue 480

Explanation:

The adjusting entry is shown below:

Interest receivable Dr 480  ($9,000 × 8% × 8 months ÷ 12 months)

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(Being the interest receivable is recorded)

The interest receivable is debited as it increased the assets and credited the interest revenue as it also increased the revenue

The eight months are considered from May 1,2018 to December 31,2018

6 0
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4 0
3 years ago
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Nitella [24]

Option B

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<u>Explanation:</u>

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