1. A restaurants food service department has a sales revenue of $695,000 and a beverage department with a sales revenue of $205,000. Indirect costs of $58,000 are to be allocated based on sales revenue to both departments. Calculate the amount of total indirect costs allocated to each. Food Beverage

2. Allocate indirect costs of $44,000 by square footage method to the food and beverage departments of a restaurant. Food department occupied 5,000 sq. ft. and the beverage department, 1,400 sq. ft.

Food

Beverage