Answer:
Ace Guitar Company
The service departments' expenses proportional to the sales of each region are as follows:
A Region = $216,580
B Region = $116,620
Explanation:
a) Data and Calculations:
A Region B Region Total
Sales $773,500 $416,500 $1,190,000
Cost of goods sold 293,900 158,300 452,200
Selling expenses 185,600 100,000 285,600
Service department expenses
Purchasing $199,900
Payroll accounting 133,300
Total $333,200
A Region = $216,580 ($773,500 / $1,190,000 * $333,200)
B Region = $116,620 ($416,500 / $1,190,000 * $333,200)
