Ice House Industries, Inc -Based on the Above Data, Determine the Maintenance Cost Allocated

Short Answer

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.
$\begin{array} { | l | c | c | c | } \hline & \begin{array} { c } \text { Cooking } \\\text { Department }\end{array} & \begin{array} { c } \text { Churning } \\\text { Department }\end{array} & \begin{array} { c } \text { Freezing } \\\text { Department }\end{array} \\\hline \begin{array} { l } \text { Number of } \\\text { employees }\end{array} & 2,940 \text { employees } & 4,900 \text { employees } & 1,960 \text { employees } \\\hline \text { Square feet occupied } & 33,250 \text { Sq. Ft. } & 38,000 \text { Sq. Ft } & 23,750 \text { Sq. Ft. } \\\hline\end{array}$
-Based on the above data, determine the maintenance cost allocated to each operating department of Ice House Industries, Inc.
A Cooking: $\$ 219,333$$\quad$ Churing: $\$ 219,333$ $\quad$ Freezing: $\$ 219,333$
B. Cooking: $\$ 230,300$ $\quad$ Churning: $\$ 263,200$$\quad$ Freezing: $\$ 164,500$
C. Cooking: $\$ 33,250$$\quad$ Churning: $\$ 38,000$$\quad$ Freezing: $\$ 23,750$
D. Cooking: $\$ 32,666$ $\quad$ Churning: $\$ 32,666$ $\quad$ Freezing: $\$ 32,666$
E Cooking: $\$ 34,300$ $\quad$ Churing: $\$ 39,200$ $\quad$ Freezing: $\$ 24,500$