Wilson Trade School allocates administrative costs to its respective departments based on the number of students enrolled,while maintenance and utilities are allocated per square feet of the classrooms.Based on the information below,what is the total amount allocated to the Automotive Department (rounded to the nearest dollar)if administrative costs for the school were $50,000,maintenance fees were $12,000,and utilities were $6,000?
Department Students Classrooms
Electrical............ 120 10,000 sq.ft.
Automotive……. 70 12,000 sq.ft.
Secretarial……… 50 8,000 sq.ft.
Plumbing………. 40 6,000 sq.ft .
A)$ 0.
B)$17,000.
C)$18,500.
D)$22,667.
E)$30,000.

Question

Wilson Trade School allocates administrative costs to its respective departments based on the number of students enrolled,while maintenance and utilities are allocated per square feet of the classrooms.Based on the information below,what is the total amount allocated to the Automotive Department (rounded to the nearest dollar)if administrative costs for the school were $50,000,maintenance fees were $12,000,and utilities were $6,000?
Department Students Classrooms
Electrical............ 120 10,000 sq.ft.
                     Automotive……. 70 12,000 sq.ft.
Secretarial……… 50 8,000 sq.ft.
Plumbing………. 40 6,000 sq.ft .
A)$ 0.
B)$17,000.
C)$18,500.
D)$22,667.
E)$30,000.

Quizplus · Accepted Answer

The total amount allocated to the Automotive Department is $18,500. This is calculated by allocating administrative costs based on the number of students enrolled, and maintenance and utilities based on the square footage of the classrooms. The Automotive Department has 70 students and 12,000 square feet of classrooms. The administrative costs are $50,000, so the Automotive Department is allocated $50,000 * 70 / 380 = $9,211. The maintenance fees are $12,000, so the Automotive Department is allocated $12,000 * 12,000 / 36,000 = $4,000. The utilities are $6,000, so the Automotive Department is allocated $6,000 * 12,000 / 36,000 = $2,000. The total amount allocated to the Automotive Department is $9,211 + $4,000 + $2,000 = $18,500.

Wilson Trade School Allocates Administrative Costs to Its Respective Departments