Question

Expense Basis for allocation Amount Administrative Square feet of floor space $ 15,000 Advertising Amount of dollar sales $ 8,000 The following information is available for its three operating (sales) departments: Department Square Feet Dollar Sales Produce 1,000 $ 80,000 Bakery 800 $ 30,000 Meats 1,200 $ 42,000 Totals 3,000 $ 152,000 What is the total administrative expense allocated to the Meats department

Answer 1

Answer:

Total administrative expense allocated to the Meats department is $ 6,000

Explanation:

Total Administarive Expenses   15000

Total Sales in square Feet  3000

Total Sales in Dollar      152000

Meat Department sales in Square Feet  1200

Addministrative expenses allocated to Meat Department

=15000/3000*1200=6000