Multiple Choice Problems

Ice House Industries, Inc. has three operating departments: Cooking, Churning and Freezing. Indirect factory costs for the current period were Administrative, $560,000 and Maintenance, $98,000. Administrative costs are allocated to operating departments based on the number of workers and maintenance costs are allocated to operating departments based on square footage occupied.

cooking depart churning depart freezing depart

number of employess 2.940 employess 4900 employess 1960 employees

square feet occupied 33.250 Sq Ft 38.000 Sq Ft 23.750 Sq Ft

3. Based on the above data, determine the administrative cost allocated to each operating department of Ice House Industries, Inc.

(A) Cooking: $168.000 Churning: $280.000 Freezing: $112.000

(B) Cooking: $186.666 Churning: $186.666 Freezing: $186.666

(C) Cooking: $112.000 Churning: $280.000 Freezing: $168.000

(D) Cooking: $280.000 Churning: $112.000 Freezing: $168.000

(E) Cooking: $219.333 Churning:$219.333 Frezzing: $219.333

A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E

4. Based on the above data, determine the maintenance cost allocated to each operating department of Ice House Industries, Inc.

(A) Cooking: $219.333 Churning:$219.333 Frezzing:$219.333

(B) Cooking: $230.300 Churning: $263.200 Frezzing:$164.500

(C) Cooking: $33.250 Churning: $38.000 Frezzing:$23.750

(D) Cooking: $32.666 Churning: $32.666 Freezing:$32.666

(E) Cooking:$34.300 Churning: $39.200 Freezing:$24.500

A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E