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You are tasked with analyzing different cost allocation methods for LMN Corporation. Use the following data: Cost Category Total Cost ($) Allocation Method Maintenance $80,000
You are tasked with analyzing different cost allocation methods for LMN Corporation. Use the following data:
Cost Category | Total Cost ($) | Allocation Method |
---|---|---|
Maintenance | $80,000 | Square Footage |
Utilities | $60,000 | Number of Employees |
Depreciation | $50,000 | Asset Value |
Requirements:
- Allocate costs using the square footage, number of employees, and asset value methods.
- Calculate the total allocated costs for each method.
- Present the analysis in a detailed table format.
- Discuss the suitability of each method for cost allocation.
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