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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

  • $26,319.

  • $32,255.

  • $32,300.

  • $32,552.

  • $36,000.

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