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Expense Basis for allocation Amount Administrative Square feet of floor space $ 15,000 Advertising Amount of dollar sales $ 8,000 The following information is available for its three operating (sales) departments: Department Square Feet Dollar Sales Produce 1,000 $ 80,000 Bakery 800 $ 30,000 Meats 1,200 $ 42,000 Totals 3,000 $ 152,000 What is the total administrative expense allocated to the Meats department

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Answer:

Total administrative expense allocated to the Meats department is $ 6,000

Explanation:

Total Administarive Expenses   15000

Total Sales in square Feet  3000

Total Sales in Dollar      152000

Meat Department sales in Square Feet  1200

Addministrative expenses allocated to Meat Department

=15000/3000*1200=6000

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