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 $ 14,000 22,000 99,000 13,000 Square Feet Sales 1,200 840 3,960 6,000 $214,600 155,400 The company also has $70,000 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 36 employees and the Clothing department has 144 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 Allocation Base Square feet occupied Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total 1,200 1,200 12,000 10.00% $ 70,000 Office 840 0 70,000 0 Shoes 3,960 0 70,000 0 Clothing 6,000 0 70,000 Totals 12,000 0 $ 70,000 Personnel expense Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Number of employees Numerator Denominator % of Total