Joy Co. allocates overhead expenses to all departments on the basis of floor space (sq. ft.)occupied by each department. This year total overhead expenses were $22,000. Department A. occupied 15,000 sq. ft., Department B. 18,000 sq. ft., and Department C. 9,000 sq. ft. The amount of overhead allocated to Department B is (round to the nearest dollar):
A)$1,800
B)$9,429
C)$9,900
D)$39,600
E)None of these

Question

Quizplus · Accepted Answer

The total floor space is 15,000 + 18,000 + 9,000 = 42,000 sq. ft. The overhead allocated to Department B, which occupies 18,000 sq. ft., is calculated as (18,000 / 42,000) * $22,000 = $9,428.57, which rounds to $9,429.

Joy Co Allocates Overhead Expenses to All Departments on the Basis