Windermere Corporation has 25,000 square feet in department A; 20,000 square feet in department B; and 55,000 square feet in department C.Janitorial services as based on square footages in each department.How will the $35,000 of janitorial services be allocated?

Question

Quizplus · Accepted Answer

To allocate the janitorial services cost based on square footage, we need to find the percentage of space each department occupies.
- Department A: 25,000 / (25,000 + 20,000 + 55,000) = 0.3125 or 31.25%
- Department B: 20,000 / (25,000 + 20,000 + 55,000) = 0.25 or 25%
- Department C: 55,000 / (25,000 + 20,000 + 55,000) = 0.4375 or 43.75%

Then, we apply these percentages to the total cost of janitorial services:
- Department A: 0.3125 x $35,000 = $10,937.50
- Department B: 0.25 x $35,000 = $8,750
- Department C: 0.4375 x $35,000 = $15,312.50

Therefore, the best choice is A) $19,250 to C; $7,000 to B; and $8,750 to A.

Windermere Corporation Has 25,000 Square Feet in Department A; 20,000