Hawaii’s SurfingViews Hotel has three selling departments: rooms, restaurants and bars. Some of SurfingViews’ indirect operating expenses are allocated to the three departments in the following manner.

Required:
Calculate the amount of indirect expense to be allocated to each department.

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Indirect expense Allocation basis Total expense to be allocat Rent Advertising Floor space $90,000 Sales $20,000 Depreciation Net book value of assets $45,000 Salaries and wages $100,000 Personnel department The hotel's accountant has collected the following information in connection with the hotel's indirect cost allocation exercise. Rooms Restaurants Bars Floor space in square metres 350 100 50 Sales $1,150,000 $250,000 $100,000 Net book value of fixed $900,000 $200,000 $100,000 assets Salaries and wages $250,000 $210,000 $40,000