Depreciation Expense on the Heating and Air Conditioning Equipment for the factory of $50,000 is allocated to
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Question:
Depreciation Expense on the Heating and Air Conditioning Equipment for the factory of $50,000 is allocated to five departments. The cost allocation base for this expense is the number of cubic feet, which equals 100,000 cubic feet. Information for five departments is below:
Department Square Feet Cubic Feet
Department A15,00015,000
Department B5,000 5,000
Department C30,00020,000
Department D20,00035,000
Department E10,00025,000
How much Depreciation Expense is allocated to Department A?
A. $15,000
B. $7,500
C. $2,500
D. $18,750
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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