QUESTION 1 22 Marks Bayview Hotel has three selling departments: rooms, restaurant and coffee shop. Some of the hotel's indirect operating expenses are allocated to the three departments in the following manner. Indirect expense Allocation basis Total expense to be allocated Rent Floor space R90,000 Advertising Sales 20,000 Salaries & wages No of staff 100,000 The hotel's accountant has collected the following information in connection with the hotel's indirect cost allocation exercise: Rooms Restaurant Coffee Shop Floor space in m2 350 100 50 Sales R1,140,000 R225,000 R135,000 Personnel 55 35 10 Calculate the amount of indirect expenses to be allocated to each department, by completing the tables below: Rooms Restaurant Coffee shop Total Floor space 350m2 100m2 50m2 1500m2 Rent % % 100% Sales R1,140,000 R225,000 R135,000 |R1,500,000 Advertising % % % 100% Personnel 55 35 10 100 Salaries & Wages 100% (9) Indirect exp Rooms Restaurant Coffee shop Total Rent Advertising Salaries & wages Total (13)