Question: Admin. Cost are allocated proportionate to net sales. Admin. Cost: 60,000 Revenues: Department 1: 500,000 Department 2: 300,000 Department 3: 1,000,000 Sales Return Department 2:

Admin. Cost are allocated proportionate to net sales.


Admin. Cost: 60,000

Revenues:

Department 1: 500,000

Department 2: 300,000

Department 3: 1,000,000

Sales Return Department 2: 50,000


What is the amount to allocate to department 1 and department 2?




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