The following is a partially completed lower section of a departmental expense a
ID: 2493727 • Letter: T
Question
The following is a partially completed lower section of a departmental expense allocation spreadsheet for Stoneham. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Assembly. (Do not round your intermediate calculations.)
$31,500.
$12,000.
$8,800.
$15,200.
$10,500.
The following is a partially completed lower section of a departmental expense allocation spreadsheet for Stoneham. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Assembly. (Do not round your intermediate calculations.)
Explanation / Answer
Total square feet=3,800+2,200=6,000
Total Maintenance expenses=$24,000
Maintenance Department Expenses to be allocated to Assembly
= total Maintenance expenses/total area x area of assembly
=24,000/(3800+2200) x 2200=$15,200
Hence Option 4 is correct
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