Superior Trade School allocates administrative cost to respective departments ba

Question

Superior Trade School allocates administrative cost to respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of classrooms. Based on the pertinent facts below, what is the total amount of expenses allocated to the Automotive Department if administrative cost for the school totaled $50,000 and maintenance fees were $10,000 and utilities were $9,000?
Department Students Classrooms
Electrical 12 1,000 sq. ft.
Automotive 7 900 sq. ft.
Secretarial 5 800 sq. ft.
Plumbing 4 700 sq. ft.
a.$17,250 b.$17,382 c. $17,529 d.$18,265

please show work

Explanation / Answer

AUtomotie dept has 7 Students & area is 900 Sft Total Admin cost = $50000 : Based on No of students : Total no of studets = 12+7+5+4=28 Total Maint fee = $10,000 : Area of classooms: Tota Area=1000+900+800+700=3400 Total Utilities = $9000 : Area of classooms So Admin cost for Automtive dept = (No of stu in Auto/Total Stud)*Total Admin cost = (7/28)*50000 = $12500 Maint fee fr auto dept = (Are of auto/Total Area)*Total Maint fee = (900/3400)*10000=2647 Util fee fr auto dept = (Are of auto/Total Area)*Total Util fee = (900/3400)*9000=2382 So total exp for Auto dept = 12500+2647.05+2382.35 = $17529 So ans is Optio (C) $17,529

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