Question
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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