Direct Allocation Miles Driven Labor Hours Last Year Branch Basis North 350,000 40,000 Miles S300,000 South 200,000 20,000 Labor $200,000 Midtown 500,000 64,000 Labor S450,000 Records for This Year Miles Driven Direct Labor Hours Branch North 275,000 38,000 South 247,000 31,000 Midtown 395,000 55,500

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The director of public works needs to distribute the indirect cost allocation of $1.2 million to the three branches around the city. She will use the information from last year to determine the rates for this year. a. Determine this year’s indirect cost rates for each branch. b. Use the rates from last year and records for this year to distribute the allocation for this year. How much of the $1.2 million is actually distributed?

Direct
Allocation
Miles
Driven
Labor
Hours
Last
Year
Branch
Basis
North
350,000
40,000
Miles
S300,000
South
200,000
20,000
Labor
$200,000
Midtown
500,000
64,000
Labor
S450,000
Records for This Year
Miles
Driven
Direct Labor
Hours
Branch
North
275,000
38,000
South
247,000
31,000
Midtown
395,000
55,500
Transcribed Image Text:Direct Allocation Miles Driven Labor Hours Last Year Branch Basis North 350,000 40,000 Miles S300,000 South 200,000 20,000 Labor $200,000 Midtown 500,000 64,000 Labor S450,000 Records for This Year Miles Driven Direct Labor Hours Branch North 275,000 38,000 South 247,000 31,000 Midtown 395,000 55,500
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