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
