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Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense
Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Rent Basis for allocation Amount Square feet of floor space $ 24,000 Amount of dollar sales Number of employees 30,000 Advertising Administrative 45,000 The following information is available for its three operating (sales) departments Number of Department Square Feet Dollar Sales employees A 3,000 $ 280,000 6 B 3,400 $ 300,000 B C 3,600 $420,000 10 Totals 10,000 $1,000,000 24 What is the total expense allocated to Department 87 Multiple Choice $29.375 $30,462 $30.500 $30,775 $32,160
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