Department A had total sales of $84,000 and Department B had total sales of $36,000. Other Office Expenses, totaling $3,100, are allocated to the departments based on total sales.
- The amount of Other Office Expense allocated to Department B is:

Question

Quizplus · Accepted Answer

First, we need to find the total sales for both departments combined:

$84,000 + $36,000 = $120,000

Next, we need to determine the percentage of total sales each department represents:

Department A: $84,000 ÷ $120,000 = 0.70 or 70%
Department B: $36,000 ÷ $120,000 = 0.30 or 30%

We can now use these percentages to allocate the Other Office Expenses:

Department A: 70% x $3,100 = $2,170
Department B: 30% x $3,100 = $930

Therefore, the amount of Other Office Expense allocated to Department B is $930, which corresponds to choice (B).

Department a Had Total Sales of $84,000 and Department B