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Assigning Traceable Fixed Expenses Selected data for Miller Company, which operates three departments, follow: Department A Department B Department C Inventory $80,000 $288,000 $112,000 Equipment

Assigning Traceable Fixed Expenses Selected data for Miller Company, which operates three departments, follow:

Department A Department B Department C
Inventory $80,000 $288,000 $112,000
Equipment (Avg. Cost) $720,000 $432,000 $288,000
Payroll $405,000 $360,000 $135,000
Square feet of floor space 18,000 9,000 3,000

During the year, the companys fixed expenses included the following:

Depreciation on equipment

$80,000

Real estate taxes

24,000

Personal property taxes (on inventory and equipment)

38,400

Personnel department expenses

40,000

Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed expenses are traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments.

Do not round until your final answer. Round final answer to the nearest whole number.

Department A Department B Department C
Depreciation Answer Answer Answer
Real Estate Taxes Answer Answer Answer
Personal property taxes Answer Answer Answer
Personal dept. expenses Answer Answer Answer

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