Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A food service department has sales revenue of $695,000 and a beverage department has sales revenue of $205,000. Indirect costs total $58,000 and are to

image text in transcribed
A food service department has sales revenue of $695,000 and a beverage department has sales revenue of $205,000. Indirect costs total $58,000 and are to be allocated based on sales revenue to both departments. Calculate the amount of total indirect costs that will be allocated to each department. Food Department: $ Beverage Department: $ Calculations: Food Service Department Beverage Department Ch 7:2 A restaurant has two departments, food and beverage. Food occupies 5,000 square feet and the beverage occupies 1,400 square feet. Indirect costs of $44,000 are to be allocated based on square footage to each department. What amount of the indirect costs will be allocated to each department? Food Department: $ Beverage Department: Calculations: Food Service Department Beverage Department

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions