Reference: 22_04
Ice House Industries, Inc -Based on the Above Data,determine the Administrative Cost Allocated to Cooking

Multiple Choice

Reference: 22_04
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.
$$\begin{array} { | l | c | c | c | } \hline & \begin{array} { c } \text { Cooking } \\\text { Department }\end{array} & \begin{array} { c } \text { Churning } \\\text { Department }\end{array} &{ \begin{array} { c } \text { Freezing } \\\text { Department }\end{array} } \\\hline \begin{array} { l } \text { Number of } \\\text { employees }\end{array} & 2,940 \text { employees } & 4,900 \text { employees } & 1,960 \text { employees } \\\hline \text { Square feet occupied } & 33,250 \text { Sq. Ft. } & 38,000 \text { 5q. Ft } & 23,750 \text { Sq. Ft. } \\\hline\end{array}$$
-Based on the above data,determine the administrative cost allocated to each operating department of Ice House Industries,Inc.

A)
B)
C)
D) $\text { Cooking: } \$ 280,000 \quad \text { Churning: } \$ 112,000 \quad \text { Freezing: } \$ 168,000$
E) $\text { Cooking: } \$ 219,333 \quad \text { Churning: } \$ 219,333 \quad \text { Freezing: } \$ 219,332$