1 Department Personnel Office Shoes Book Clothing Direct Expenses $ 12,000 Square Feet 600 Sales 31,000 420 85,000 2,340 16,000 2,640 $ 135,200 124,800 The company also has $50,000 of utilities expense, which is an indirect expense to all departments and is allocated to the four departments based on square feet occupied. The Shoes department has 14 employees and the Clothing department has 126 employees. Personnel expense is allocated to operating departments based on the number of employees. Office expense is allocated to operating departments based on sales. 1. Allocate utilities expense to the four departments. 2. Allocate personnel expense to the Shoes and Clothing departments. 3. Allocate office expense to the Shoes and Clothing departments. Hint Print Utilities Department Personnel ferences Office -Shoes Clothing Totals Personnel expense Department Shoes Clothing Totals Office expense Department Shoes Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Square feet occupied Numerator Denominator % of Total 400 400 5,000 8.00% $ 66,000 $ 5,280 400 400 5,000 8.00% 66,000 5,280 1,600 1,600 5,000 32.00% 66,000 21,120 2,600 2,600 5,000 5,000 52.00% 100.00% 66,000 34,320 $ 66,000 Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Number of employees Numerator Denominator % of Total 36 36 120 30.00% $ 84 84 120 120 70.00% 100.00% 23,280 $ 23,280 6,984 16,296 $ 23,280 Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Sales Numerator Denominator % of Total $ 150,000 $ 150,000 $ 250,000 60.00% $ 35,280 $ 21,168