Super Grocery store allocates its service department expenses to its various ope

Question

Super Grocery store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: Expense Basis for allocation Amount Administrative Square feet of floor space $15,000 Advertising Amount of dollar sales $8,000 The following information is available for its three operating (sales) departments: Department Square Feet Dollar Sales Produce 1,000 $80,000 Bakery 800 $30,000 Meats 1,200 $42,000 Totals 3,000 $152,000 What is the total administrative expense allocated to the Meats department?

Explanation / Answer

Total administrative expense allocated to the Meats department is $ 6,000

Total Administarive Expenses 15000 Total Sales in square Feet 3000 Total Sales in Dollar 152000 Meat Department sales in Square Feet 1200 Addministrative expenses allocated to Meat Department 15000/3000*1200 6000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.