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Please help Exercise 22-6 (Algo) Departmental expense allocations LO P2 700 Gomez Company has two service departments (Personnel and Office) and two operating departs (Shoes
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Exercise 22-6 (Algo) Departmental expense allocations LO P2 700 Gomez Company has two service departments (Personnel and Office) and two operating departs (Shoes and Clothing). Following are the direct expenses and square feet occupied by the four departments, and the total salu. for the two operating departments. Department Direct Expenses Square Feet Sales Personnel $ 10,000 560 ottice 36,000 Shoes 105,000 2,590 $ 296,400 clothing 12,000 3,150 83,600 The company also has $69,000 of utilities expense, which is an indirect expense to all departments and is allocated to the four departments based on square feet occupled. The Shoes department has 66 employees and the Clothing department has 154 employees. Personnel expense is allocated to operating departments based on the number of employees. Office expense is allocated to operating departments based on soles. 1. Allocate utilities expense to the four departments 2. Allocate personnel expense to the shoes and Clothing departments 3. Allocate office expense to the Shoes and Clothing departments Utilities Allocation Baso Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Personnel Office Shoes Clothing Totals Personnel expense Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total + Department Shoes Clothing Totais Office expense Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Numerator Denominator % of Total Department Shoes Clothing Totals Step by Step Solution
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