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ASAP!! . Abdurahman Compagny is a company working in 3 locations. The corporate office provides 2 kinds of services (maintenance and personnel) to 3 locations
ASAP!!
. Abdurahman Compagny is a company working in 3 locations.
The corporate office provides 2 kinds of services (maintenance and personnel) to 3 locations (location 1, location 2 and location 3).In a recent accounting period, the direct cost for maintenance was $25,000 and for personnel was $15,000.Maintenance costs are allocated on the basis of square feet, and personnel costs are allocated based on the basis of number of employees.
Number of
Square Feet Employees
Support Departments:
Maintenance 1,000 15
Personnel 1,000 8
Operating Departments:
Location 1 5,000 12
Location 2 6,000 18
Location 3 3,000 10
If the compagny uses the direct method and has an individual cost for each location $15,000, $12,000 and $10,000 respectively, Calculate the total costs allocated to each location.
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