Exercise 9-6 (Algo) Departmental expense allocations LO P2 93,600 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 Direct Expenses Square Feet Sales Personnel $ 15,000 1,880 Office 28,000 990 Shoes 123,000 3,330 $ 166,400 Clothing 18,000 3,600 The company also has $45,000 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 72 employees and the Clothing department has 168 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 Allocation Bano Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Personnel Office Shoes Clothing Utilities Allocation Base Percent of Allocation Base Allocated Cost Cost to be Allocated Numerator Denominator % of Total Department Personnel Office Shoes Clothing Totals Personnel expense Allocation Base Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Shoes Clothing Totals Office expense Allocation Baso Cost to be Allocated Allocated Cost Percent of Allocation Base Numerator Denominator % of Total Department Shoes Clothing Totals