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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
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 $ 18,000 300 Office 38,000 350 Shoes 128,000 2,300 $ 238,000 Clothing 16,000 2,050 102,000 The company also has $63,000 of utilities expense, which is an indirect expense to all departments and is
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