Allocations and Departmental Income Statements Sales and Direct Expenses Total Sales and Expenses Coding Marketing Accounting Hiring Security C Suite Sales 3,000,000 1,000,000 800,000 1,200,000 Direct Expenses Direct Materials 105,000 20,000 50,000 35,000 Direct Labor 1,628,000 400,000 300,000 450,000 100,000 80,000 298,000 Depreciation - Equipment 72,060 20,000 2,000 15,000 1980 33080 Supplies 43,000 5,000 25,000 10,000 3000 Total Direct Expenses 1,848,060 445,000 377,000 510,000 104,980 113,080 298,000 Gross Profit 1,151,940 555,000 423,000 690,000 (104,980) (113,080) (298,000) Indirect Expenses Rent (allocate over square feet) 64,000 Utilities (allocate over square feet) 28,000 Corporate Training (allocate over # of emplo 50,000 Total Indirect Expenses 142,000 Instructions: Allocate Indirect Expenses Sales and Direct Expenses Total Sales and Expe Coding Marketing Accounting Hiring Security C Suite Sales 3,000,000 1,000,000 800,000 1,200,000 Direct Expenses Direct Materials 105,000 20,000 50,000 35,000 Direct Labor 1,628,000 400,000 300,000 450,000 100,000 80,000 298,000 Depreciation - Equipment 72,060 20,000 2,000 15,000 1,980 33,080 Supplies 43,000 5,000 25,000 10,000 3,000 Total Direct Expenses 1,848,060 445,000 377,000 510,000 104,980 113,080 298,000 Gross Profit 1,151,940 555,000 423,000 690,000 (104,980) (113,080) (298,000) Indirect Expenses Total Allocation Rate Rent (allocate over square feet) 64,000 Utilities (allocate over square feet) 28,000 Corporate Training (allocate over # of emplo 50,000 Total Indirect Expenses 142,000 Allocation Activities Coding Marketing Accounting Hiring Security C Suite Total Square Feet Used 1,500 3,650 2,000 250 100 2,500 #emnloyees 90 50 100 5 2 3 Instructions: Calculate the service costs allocation rate Sales and Direct Expenses Total Sales and Expenses Coding Marketing Accounting Hiring Security C Suite Sales 3,000,000 1,000,000 800,000 1,200,000 Direct Expenses Direct Materials 105,000 20,000 50,000 35,000 Direct Labor 1,628,000 400,000 300,000 450,000 100,000 80,000 298,000 Depreciation - Equipment 72,060 20,000 2,000 15,000 1,980 33,080 Supplies 43,000 5,000 25,000 10,000 3,000 Total Direct Expenses 1,848,060 445,000 377,000 510,000 104,980 113,080 298,000 Gross Profit 1,151,940 555,000 423,000 690,000 (104,980) (113,080) (298,000) Indirect Expenses Total Allocation Rate Rent (allocate over square feet) 64,000 Corporate Training (allocate over # of emplo 28,000 Total Indirect Expenses 50,000 142,000 Service Department Exepenses Total Allocation Rate Hiring (allocate over # of new hires) Security (allocate over square feet) C Suite (allocate over # of employees) Total Service Department Expenses Allocation Activities Total Number of new hires 20 7 13 Square Feet Used 1,500 3,650 2,000 Number of employees 90 50 100
