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Selected data for Colony Company, which operates three departments, follow: Department A Department B Department C Inventory Equipment (average cost) Payroll Square feet of floor
Selected data for Colony Company, which operates three departments, follow: Department A Department B Department C Inventory Equipment (average cost) Payroll Square feet of floor space $90,000 $810,000 $607,500 27,000 $324,000 $486,000 $540,000 13,500 During the year, the company's fixed expenses included the following: Depreciation on equipment Real estate taxes Personal property taxes (on inventory and equipment) Personnel department expenses Depreciation Real estate taxes Personal property taxes Personnel dept. expenses $ $126,000 $324,000 $202,500 4,500 $135,000 40,500 64,800 67,500 Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed expenses are traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments. Do not round until your final answer. Round final answer to the nearest whole number. Department A Department B Department C $ $
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