Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lenoir Hotel operated 3 departments and during last period, the sales and direct expenses were recorded as Room 80,000 30,000 50,000 F&B $40,000 S20,000 20,000

image text in transcribed

Lenoir Hotel operated 3 departments and during last period, the sales and direct expenses were recorded as Room 80,000 30,000 50,000 F&B $40,000 S20,000 20,000 Retail 20,000 $6,000 $14,000 TOTAL $140,000 56,000 84,000 SALES DIRECT EXPENSES DEPARTMENTAL INCOME The company also incurred the following indirect expenses: Administrative and General Insurance Expense $ 6,000 $12,000 4,000 8,000 Property Taxes The management of Lenoir Hotel has decided to distribute the above indirect expenses to the 3 departments using the below criteria: a. "Administrative and General" and "Promotion and Marketing are to be distributed base on sales mix. b. The Property Taxes Expenses are to be distributed based on the square footage occupied by each department as follows: Room 20,000 sq ft F&B 5,000 sq ft Retail2,000 sq ft The Insurance Expenses are to be distributed equally among 3 departments. c. Room F&B Retail Total Departmental Net Income $50,000 S84,000 $20,000 $14,000 General Promotion and Property Tax Insurance Expense Total Indirect Net Profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Getting Clinical Audit Right To Benefit Patients

Authors: Healthcare Quality

1st Edition

1873543069, 978-1873543061

More Books

Students also viewed these Accounting questions