Selected data for Miller Company, which operates three departments, follow: Department A Department B Department C Inventory
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Question:
Selected data for Miller Company, which operates three departments, follow:
Department A | Department B | Department C | ||
---|---|---|---|---|
Inventory | $40,000 | $144,000 | $56,000 | |
Equipment (average cost) | $360,000 | $216,000 | $144,000 | |
Payroll | $810,000 | $720,000 | $270,000 | |
Square feet of floor space | 18,000 | 9,000 | 3,000 |
During the year, the company's fixed expenses included the following:
Depreciation on equipment | $40,000 | |||
Real estate taxes | 12,000 | |||
Personal property taxes (on inventory and equipment) | 19,200 | |||
Personnel department expenses | 40,000 |
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.
Do not round until your final answer. The round final answer to the nearest whole number.
Department A | Department B | Department C | ||
---|---|---|---|---|
Depreciation | Answer | Answer | Answer | |
Real estate taxes | Answer | Answer | Answer | |
Personal property taxes | Answer | Answer | Answer | |
Personnel dept. expenses | Answer | Answer | Answer |
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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