Selected data for Miller Company, which operates three departments, follow:

During the year, the company’s fixed expenses included the following:

Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed expenses are traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments.

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Inventory. Equipment (average cost). Payroll..... Square feet of floor space Department A Department B Department C $ 80,000 $288,000 $112,000 720,000 432,000 288,000 405,000 360,000 135,000 18,000 9,000 3,000