Week 3 Quiz for chapters 5 and 6

Clark Inc. has 3 operating departmentscommercial, industry, and private for which the corporate office provides 2 kinds of services, accounting, and housekeeping. Accounting costs are allocated on the basis of number of employees, and housekeeping costs are allocated based on the basis of number of square feet.

	Direct costs	# of Square feet	# of Employees
Accounting	$ 56,000	2,000	10
Housekeeping	33,000	3,000	5
Commercial	116,000	6,000	35
Industry	124,000	4,000	40
Private	105,000	8,000	25

How much total cost will Clark, Inc. allocate to the commercial department?