Question
Super Grocery store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Basis
Super Grocery 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 Administrative Square feet of floor space $15,000 Advertising Amount of dollar sales $8,000 The following information is available for its three operating (sales) departments: Department Square Feet Dollar Sales Produce 1,000 $80,000 Bakery 800 $30,000 Meats 1,200 $42,000 Totals 3,000 $152,000 What is the total administrative expense allocated to the Meats department?
$6,000.
$9,000.
$4,145.
$1,200.
$3,000.
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