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350 Gomez Company has two service departments (Personnel and Office) and two operating departments (Shoes and Clothing). Following are the direct expenses and square feet

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350 Gomez Company has two service departments (Personnel and Office) and two operating departments (Shoes and Clothing). Following are the direct expenses and square feet occupled by the four departments, and the total sales for the two operating departments Department Direct Expenses Square Feet Sales Personnel $ 18,000 300 office 38,000 Shoes 128,000 2,300 $ 238,000 Clothing 16,000 2,ose 102,000 The company also has $63,000 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 54 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 Utilities Allocation Base Cost to be Allocated Allocated Cont Department Personnel Office Shoes Clothing Total Square feet occupied 300 350 2.300 2050 5000 Percent of Allocation Base Numerator Denominator % of Total 300 5,000 600% 350 5,000 7.00% 2,300 5,000 4600% 2050 5,000 4100% 100.00% Personnel expense Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost PARA Utilities Cost to be Allocated Allocated Cost Department Personnel Office 350 Shoes Clothing Totals Allocation Base Percent of Allocation Base Square feet occupied Numerator Denominator % of Total 300 300 5,000 6.00% 350 5,000 700% 2.300 2 300 5,000 46.00% 2,050 2050 5,000 4100% 5,000 10000% Allocation Base Percent of Allocation Base Number of employees Numerator Denominator % of Total 0 Personnel expense Cost to be Allocated Allocated Cost Department Shoes Clothing Totals 0 0 Office expense Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Coat Numerator Denominator % of Total 0 Department Shoes Clothing Totals 0 0

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