Question

Braun Company has one service department and two operating (production) departments. Maintenance Department costs are allocated to the two operating departments based on square feet occupied. Listed below are the operating data for the current period: Department Direct Expenses Square Feet Maintenance $ 25,500 Milling 76,500 10,000 Assembly 105,400 15,000 The total cost of operating the Assembly Department for the current period is: rev: 12_17_2020_QC_CS-243789 Multiple Choice $91,800. $115,600. $105,400. $120,700. $130,900.

Answer 1

$120,700

Step-by-step explanation:

Calculation to determine what The total cost of operating the Assembly Department for the current period is

First step is to Allocate Maintenance costs to Assembly department

Assembly=$25,500 × (15,000/25 000) >= $15,300

Now let calculate the Total Assembly costs

Total Assembly costs= $105,400 + 15,300

Total Assembly costs= $120,700

Therefore The total cost of operating the Assembly Department for the current period is $120,700