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uper Grocery store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Basis

uper 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 $ 30,000
Advertising Amount of dollar sales $ 23,000

The following information is available for its three operating (sales) departments:

Department Square Feet Dollar Sales
Produce 1,350 $ 95,000
Bakery 900 $ 45,000
Meats 2,250 $ 57,000
Totals 4,500 $ 197,000

What is the total administrative expense allocated to the Meats department?

Multiple Choice

  • $15,000.

  • $19,500.

  • $6,168.

  • $2,250.

  • $4,500.

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