Question
epper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Basis
epper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments:
Expense Basis for allocation Amount Rent Square feet of floor space $ 24,000 Advertising Amount of dollar sales $ 30,000 Administrative Number of employees $ 45,000
The following information is available for its three operating (sales) departments:
Department Square Feet Dollar Sales Number of employees A 3,000 $ 280,000 6 B 3,400 $ 300,000 8 C 3,600 $ 420,000 10 Totals 10,000 $ 1,000,000 24
What is the total expense allocated to Department B?
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