Pepper Depanment store aliocates ns service department espenses to s various operating sales) departments The folowing dats is avaitable for ts service departmentsExpenseDasts for allecationADuntRentSquare feet of flnor space$47,00047,00062, 00AdvertisingAmount of dollar salesAdainistrativeNumber of enployeesThe following information s aveitable for mu three opeating tuale departmentsNumber ofDepartmentSquare Feet5,4008, 10013,500Dollar Seles$ 302,000$ 453, 00S 755, 000enployees15Totals27,000$3,510,000What as the total expense allocated to Deparnment BMutiple Choice$32.000$42065O s400$42500$40.000

Lets start with basics. in ABC costing method, overhead cost is allocated to department using…

Basts Tor alleatlon Square feet of flnor space Amount of dollar sales Number of employees Expense Rent ount $47,000 Advertising 47,000 62,000 Adainistrative The following intormation avaitable for ts three operating tales departments Nuber of Department Square Feet Dollar Seles nyLoyees 5,400 $302,000 $ 453, 000 5 755, 000 $1,510, 000 , 100 13, S00 Totals 27,000 30 What is the total expense allocated to Depanment Mupe Choice $32.600 $420 $42300 S400

Basts Tor alleatlon Square feet of flnor space Amount of dollar sales Number of employees Expense Rent ount $47,000 Advertising 47,000 62,000 Adainistrative The following intormation avaitable for ts three operating tales departments Nuber of Department Square Feet Dollar Seles nyLoyees 5,400 $302,000 $ 453, 000 5 755, 000 $1,510, 000 , 100 13, S00 Totals 27,000 30 What is the total expense allocated to Depanment Mupe Choice $32.600 $420 $42300 S400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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