Answer:
Total allocated costs= $19,250.44
Explanation:
Giving the following information:
Service Departments:
Administrative= $26,840
Facilities= $59,400
Operating Departments:
Assembly= $183,430
Wholesaling= $321,190
Employee hours= 29,000 + 15,000= 44,000 hours
Space occupied= 30,000 + 6,000= 36,000
First, we need to calculate the proportion of hours and space used for Wholesaling.
Employee hours:
Whole= 15,000/44,000= 0.341
Space occupied:
Whole= 6,000/36,00= 0.17
Now, we can allocate costs tho Wholesaling.
Administrative= 26,840*0.341= $9,152.44
Facilities= 59,400*0.17= $10,098
Total allocated costs= $19,250.44
