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Flamingos, Inc The Total Amount of the Administrative Department's Cost That Would

Question 7

Multiple Choice

Flamingos, Inc. has four departments. The Administrative Department costs are allocated to the other three departments based on the number of employees in each and the Maintenance Department costs are allocated to the Assembly and Packaging Departments based on their occupied space. Data for these departments follows:  Admin  Maintenance  Assembly  Packaging  Operating costs $30,000$15,000$70,000$45,000 No. of employees 264 Sq. ft. of space 2,0003,000\begin{array} { l | r | r | r | r } & \text { Admin } & \text { Maintenance } & \text { Assembly } & \text { Packaging } \\\hline \text { Operating costs } & \$ 30,000 & \$ 15,000 & \$ 70,000 & \$ 45,000 \\\text { No. of employees } & & 2 & 6 & 4 \\\text { Sq. ft. of space } & & & 2,000 & 3,000\end{array} The total amount of the Administrative Department's cost that would eventually be allocated to the Packaging Department is:


A) $10,000.
B) $12,000.
C) $18,000.
D) $4,800.
E) $13,000.

Correct Answer:

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