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The Maryville Construction Company occupies 88,900 square feet for construction of mobile homes. There are two manufacturing departments, finishing and assembly, and four service departments
The Maryville Construction Company occupies 88,900 square feet for construction of mobile homes. There are two manufacturing departments, finishing and assembly, and four service departments labeled S1, S2, S3, and S4. Information relevant to Maryville is as follows: Allocation Department S1 Area used 17,300 S1 S2 S3 S4 Finishing Assembly 0.20 0.10 --- 0.10 0.60 S2 4,400 0.200.20 --- 0.60 S3 8,800 0.100.10 --- 0.40 0.10 0.30 S4 4,400 0.30 0.10 0.30 0.20 0.10 Finishing 24,300 Assembly 29,700 Rent paid for the area used is $723,000. How much rent is allocable to the assembly department using the direct method of allocation? Multiple Choice $397,650. $563,646. $325,350. $241,542
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