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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 Basis
Pepper Department store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments:
Expense | Basis for allocation | Amount | |||
Rent | Square feet of floor space | $ | 31,000 | ||
Advertising | Amount of dollar sales | $ | 37,000 | ||
Administrative | Number of employees | $ | 52,000 | ||
The following information is available for its three operating (sales) departments:
Department | Square Feet | Dollar Sales | Number of employees | ||||||||
A | 3,400 | $ | 242,000 | 6 | |||||||
B | 5,100 | $ | 363,000 | 9 | |||||||
C | 8,500 | $ | 605,000 | 15 | |||||||
Totals | 17,000 | $ | 1,210,000 | 30 | |||||||
What is the total expense allocated to Department B?
Multiple Choice
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$26,319.
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$32,255.
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$32,300.
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$32,552.
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$36,000.
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