Selected data for Colony Company, which operates three departments, follow:

During the year, the company’s fixed expenses included the following

Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed expenses are traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments.

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Inventory....... Equipment (average cost). Payroll.... Square feet of floor space WAY Department A Department B $144,000 $ 40,000 360,000 607,500 216,000 540,000 27,000 13,500 Department C $ 56,000 144,000 202,500 4,500