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Allocate utilities expense to the four departments. Allocate personnel expense to the Shoes and Clothing departments. Allocate office expense to the Shoes and Clothing departments.Exercise

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Allocate utilities expense to the four departments.
Allocate personnel expense to the Shoes and Clothing departments.
Allocate office expense to the Shoes and Clothing departments.Exercise 24-6(Algo) Departmental expense allocations LO P2
Gomez Company has two service departments (Personnel and Office) and two operating departments (Shoes and Clothing). Following are the direct expenses and square feet occupied by the four departments, and the total sales for the two operating departments.
Department Direct Expenses Square Feet Sales
Personnel $ 16,000900
Office 29,000500
Shoes 110,0003,400 $ 139,200
Clothing 14,0005,200100,800
The company also has $71,000 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 12 employees and the Clothing department has 108 employees. Personnel expense is allocated to operating departments based on the number of employees. Office expense is allocated to operating departments based on sales.
Allocate utilities expense to the four departments.
Allocate personnel expense to the Shoes and Clothing departments.
Allocate office expense to the Shoes and Clothing departments.
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