Check my work Exercise 22-6 (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 Personnel Office Shoes Clothing Direct Expenses Square Feet $ 10,000 32,000 134,000 19,000 Sales 770 840 2,310 3,080 $ 192,000 48,000 The company also has $57,000 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 48 employees and the Clothing department has 192 employees. Personnel expense is allocated to operating departments based on the number of employees. Office expense is allocated to operating departments based on sales. 1. Allocate utilities expense to the four departments. 2. Allocate personnel expense to the Shoes and Clothing departments. 3. Allocate office expense to the Shoes and Clothing departments. Utilities Department Personnel Office Shoes Clothing Totals Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Square feet occupied Numerator Denominator % of Total 770 770 7,000 11.00% $ 57,000 $ 6,270 840 840 7,000 12.00% 57,000 6,840 2,310 2,310 7,000 33.00% 57,000 18,810 3,080 3,080 7,000 44.00% 57,000 25,080 7000 100.00% $ 57.000)