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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
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$15,000.
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$19,500.
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$6,168.
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$2,250.
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$4,500.
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