Molls Co. allocates overhead expenses to all departments on the basis of the floor space (sq. ft.)occupied by each department. The total overhead expenses for a recent year amounted to $80,000. Department A occupied 4,000 square feet, Department B 7,000 square feet, and Department C 9,000 square feet. What is the amount of the overhead allocated to Department C?

Question

Quizplus · Accepted Answer

Total = (4,000 + 7,000 + 9,000)= 20,000 sq. ft.; 9,000 / 20,000 = .45; .45 × $80,000 = $36,000.

Molls Co Allocates Overhead Expenses to All Departments on the Basis