Weiske Industries hires a cleaning company to clean its office building, factory, and warehouse. The cleaning company charges one amount for cleaning all three areas. How will Weiske need to categorize this cost? Weiske will not be required to allocate the cost, and the entire cleaning amount will be considered manufacturing overhead. Weiske will not be required to allocate the cost, and the entire cleaning amount will be considered a period cost. Weiske will be required to allocate the cost, using relative square feet or some other rational method. Cleaning for the office building and the warehouse will be considered a period cost, and cleaning for the factory will be considered manufacturing overhead. Weiske will be required to allocate the cost, using relative square feet or some other rational method. Explain.

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The cleaning costs for Weiske Industries can be categorized into two main groups period costs and ma... View the full answer