Question: Assigning Traceable Fixed Expenses Selected data for Colony Company, which operates three departments, follow: Inventory Equipment (average cost) Payroll Square feet of floor space Department
Assigning Traceable Fixed Expenses Selected data for Colony Company, which operates three departments, follow: Inventory Equipment (average cost) Payroll Square feet of floor space Department A $50,000 $450,000 $607,500 27,000 Department B $180,000 $270,000 $540,000 13,500 Department C $70,000 $180,000 $202,500 4,500 During the year, the company's fixed expenses included the following: Depreciation on equipment Real estate taxes Personal property taxes (on inventory and equipment) Personnel department expenses 22,500 36,000 37,500 Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule ass igrning che fixet expenses do the chree 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. Round final answer to the nearest whole number Department A Department 8 Department c Depreciation Real estate taxes Personal property taxes Personnel dept. expenses
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