The Maryville Construction Company occupies 105,800 square feet for construction of mobile homes. There are two manufacturing departments, finishing and assembly, and four service departments labeled S1, S2, S3, and S4. Information relevant to Maryville is as follows: Allocation Department Area used s1 S2 S3 S4 Finishing Assembly s1 18,600 --- 0.20 0.10 --- 0.10 0.60 S2 5,050 --- 0.40 0.40 0.20 --- --- S3 10,100 0.20 0.20 --- 0.30 0.20 0.10 S4 5,050 0.20 0.100.20 --- 0.30 0.20 Finishing 30,150 --- --- --- --- --- --- Assembly 36,850 --- --- --- --- --- --- Rent paid for the area used is $736,000. How much rent is allocable to the assembly department using the direct method of allocation? Multiple Choice $331,200. $404,800. $381,014. $256,348.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter5: Support Department And Joint Cost Allocation
Section: Chapter Questions
Problem 1BE: Charlies Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on)....
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The Maryville Construction Company occupies 105,800 square feet for construction of mobile homes. There are two manufacturing departments, finishing and assembly, and four service departments labeled S1, S2, S3,
and S4. Information relevant to Maryville is as follows:
Allocation
Department| Area used
S1
S2
S3
S4
Finishing Assembly
S1
18,600
0.20 0.10
0.10
0.60
---
---
S2
5,050
0.40 0.40
0.20
---
---
-- -
S3
10,100
0.20 0.20
0.30
0.20
0.10
---
S4
5,050
0.20 0.10 0.20
0.30
0.20
Finishing
30,150
---
Assembly
36,850
Rent paid for the area used is $736,000.
How much rent is allocable to the assembly department using the direct method of allocation?
Multiple Choice
$331,200.
$404,800.
$381,014.
$256,348.
Transcribed Image Text:The Maryville Construction Company occupies 105,800 square feet for construction of mobile homes. There are two manufacturing departments, finishing and assembly, and four service departments labeled S1, S2, S3, and S4. Information relevant to Maryville is as follows: Allocation Department| Area used S1 S2 S3 S4 Finishing Assembly S1 18,600 0.20 0.10 0.10 0.60 --- --- S2 5,050 0.40 0.40 0.20 --- --- -- - S3 10,100 0.20 0.20 0.30 0.20 0.10 --- S4 5,050 0.20 0.10 0.20 0.30 0.20 Finishing 30,150 --- Assembly 36,850 Rent paid for the area used is $736,000. How much rent is allocable to the assembly department using the direct method of allocation? Multiple Choice $331,200. $404,800. $381,014. $256,348.
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