Question

The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. (Do not round your intermediate calculations.) Purchasing Maintenance Fabrication Assembly Operating costs $ 35,000 $ 19,800 $ 99,000 $ 65,000 No. of purchase orders 16 4 Sq. ft. of space 3,450 2,5

Answer 1

Answer:

$8,319

Explanation:

Computation for the amount of Maintenance department expense to be allocated to Fabrication

First step is to calculate the total sum of square foot space

Using this formula

Total sum of square foot space = Fabrication square foot space + assembly square foot space

Let plug in the formula

Total sum of square foot space= 3,450 + 2,500

Total sum of square foot space= 5,950

Now let calculate the amount of Maintenance department expense to be allocated to Fabrication

Maintenance department expense = $ 19,800 × 2,500 ÷ 5,950

Maintenance department expense = $ 19,800 × 0.42017

Maintenance department expense = $8,319

Therefore the amount of Maintenance department expense to be allocated to Fabrication is $8,319