Indirect, undistributed costs of $8,000 are to be allocated to several departments. Two different allocation methods are

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Indirect, undistributed costs of $8,000 are to be allocated to several departments.

Two different allocation methods are being considered. Calculate the amount to be allocated for one department based on both the sales revenue and square footage methods. The department contributes 40 percent of overall revenue and occupies 52 percent of the total square footage available.

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Hospitality Management Accounting

ISBN: 9780471092223

8th Edition

Authors: Martin G Jagels, Michael M Coltman

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