The following is a partially completed lower section of a Departmental Expense Allocation Worksheet for Brickland. It
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The following is a partially completed lower section of a Departmental Expense Allocation Worksheet for Brickland. It reports the total amounts of direct and indirect expenses of the four departments. Purchasing department expenses are allocated to operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Calculate the amount of spending from the Purchasing department to allocate to Manufacturing.
Purchasing | Maintenance | Manufacturing | Assembly | |
Operating costs | $32,000 | $18,000 | $96,000 | $62,000 |
No. of purchase orders | sixteen | 4 | ||
square feet of space | 3,300 | 2,700 |
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