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 $ 18,000 38,000 128,000 16,000 Sales Square Feet 300 350 2,300 2,050 $238,000 102,000 The company also has $63,000 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 54 employees and the Clothing department has 126 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 Allocation Base Square feet occupied Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total 300 300 5,000 6.00% 350 350 5,000 7.00% 2,300 2,300 5,000 46.00% 2,050 2,050 5,000 41.00% Totals 5,000 100.00% Personnel expense Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Yo Shoes Clothing