Melvin Corporation allocates overhead to all departments based on the square footage occupied by each department. The shoe department occupies 3,000 sq. ft., the toy department 6,000 sq. ft., and the dress department 7,000 sq. ft. Total overhead to be allocated is $64,000. What is the amount allocated to the dress department?

Question

Quizplus · Accepted Answer

(3,000 + 6,000 + 7,000)= 16,000 sq. ft.; 7,000 / 16,000 = .4375; .4375 × $64,000 = $28,000.

Melvin Corporation Allocates Overhead to All Departments Based on the Square