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Super Grocery Store Allocates Its Service Department Expenses to Its

Question 116

Multiple Choice

Super Grocery store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments:  Expense  Basis for allocation  Amount  Administrative  Square feet of floor space $15,000 Advertising  Amount of dollar sales $8,000\begin{array}{llc}\text { Expense } & \text { Basis for allocation } & \text { Amount } \\\text { Administrative } & \text { Square feet of floor space } & \$ 15,000 \\\text { Advertising } & \text { Amount of dollar sales } & \$ 8,000\end{array}

The following information is available for its three operating (sales) departments:

 Department  Square  Dollar Sales  Feet  Produce 1,000$80,000 Bakery 800$30,000 Meats 1,200$42,000 Totals 3.000$152,000\begin{array}{lcc}\text { Department } &\text { Square }&\text { Dollar Sales } \\&\text { Feet }\\ \text { Produce } & 1,000 & \$ 80,000 \\ \text { Bakery } & 800 & \$ 30,000 \\ \text { Meats } & 1,200 & \$ 42,000 \\ \text { Totals } & 3.000 & \$ 152,000 \\\end{array}
What is the total administrative expense allocated to the Meats department?


A) $1,200.
B) $6,000.
C) $9,000.
D) $3,000.
E) $4,145.

Correct Answer:

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