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Gary's business is booming! Plans are in place to expand the existing facility. But in the meantime. both of the key operating divisions needed storage space for their raw materials. Operating Unit Thumbdrive (OUT) needs 2.000 square feet of space. and Operating Unit Racket (OUR) needs 3.000 square feet of space. OUT's manager got a bid of $395/month for storage space, while OU R's manager received a bid of $1.185/month for storage space. Gary believes it would be prudent to nd space that would t both of the operating units' need s.The cost of that spaceiwhich allows additional room for each unitiwould be $1,440/month. He goes ahead and rents this space for 6 months. Using the stand-alone method, determine how much of the common storage space cost will be allocated to each operating unit. (Round percentage of total to 2 decimal places, e.g. 15.25% and final answers to 2 decimal places, e.g. 15.25.) OUT OUR Total Common storage space costs $ 576.00 864.00 $ 1440Using the incremental method and further assuming that OUR is the primary user, determine how much of the common storage space cost will be allocated to each operating unit. User Cost OUR $ OUT Total $Step by Step Solution
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