Solved

Bamboozle Solutions Has Two Departments, a and B -Based on the Information Given, Calculate the Allocations for Each

Question 84

Essay

Bamboozle Solutions has two departments, A and B. The total indirect expenses by category are given as are the Value of the Assets, Square Feet, and Sales for each department.  Indirect Expense  Total  Insurance Expense $32,000 Rent Expense 36,000 Utilities Expense 15,000 Office Salaries Expense 78,000 Other Office Expense 4,000 Uncollectible Accounts Expense 21,000\begin{array}{|l|r|r|}\hline \text { Indirect Expense } & & {\text { Total }} \\\hline \text { Insurance Expense } & & \$ 32,000 \\\hline \text { Rent Expense } & & 36,000 \\\hline \text { Utilities Expense } & & 15,000 \\\hline \text { Office Salaries Expense } && 78,000 \\\hline \text { Other Office Expense } && 4,000 \\\hline \text { Uncollectible Accounts Expense } && 21,000 \\\hline\end{array}  Department A  Department B  Asset Item  Equipment 50,00065,000 Inventory 170,000215,000 Square Feet 14,00018,000 Sales 420,000500,000\begin{array} { | l | r | r | } \hline & \text { Department A } & \text { Department B } \\\hline \text { Asset Item } & & \\\hline \text { Equipment } & 50,000 & 65,000 \\\hline \text { Inventory } & 170,000 & 215,000 \\\hline \text { Square Feet } & 14,000 & 18,000 \\\hline \text { Sales } & 420,000 & 500,000 \\\hline\end{array}
-Based on the information given, calculate the allocations for each of the indirect expenses given based on their logical basis. (Keep two decimals in every percent calculation (i. e., 25.65% or .2565 not 26%). Round final allocation amount to the nearest dollar.)

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents