Gomez Company has two service departments (Personnel and Office) and two operating departments (Shoes and Clothing)....

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Gomez Company has two service departments (Personnel and Office) and two operating departments (Shoes and Clothing). Following are the direct expenses and square feet occupied by the four departments, and the total sales for the two operating departments. Sales Department Personnel office Direct Expenses $ 11,000 20,000 132,000 19,000 Square Feet 770 1,100 5,280 Shoes Clothing $ 114,400 105,600 3,850 The company also has $75,000 of utilities expense, which is an indirect expense to all departments and is allocated to the four departments based on square feet occupied. The Shoes department has 32 employees and the Clothing department has 128 employees. Personnel expense is allocated to operating departments based on the number of employees. Office expense is allocated to operating departments based on sales. 1. Allocate utilities expense to the four departments. 2. Allocate personnel expense to the Shoes and Clothing departments. 3. Allocate office expense to the Shoes and Clothing departments. Utilities Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Personnel Office Shoes Clothing Totals Personnel expense Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Shoes Clothing Totals Cost to be Allocated Office expense Percent of Allocation Base Allocated Cost Allocation Base Department Numerator Denominator % of Total Shoes Clothing Totals Gomez Company has two service departments (Personnel and Office) and two operating departments (Shoes and Clothing). Following are the direct expenses and square feet occupied by the four departments, and the total sales for the two operating departments. Sales Department Personnel office Direct Expenses $ 11,000 20,000 132,000 19,000 Square Feet 770 1,100 5,280 Shoes Clothing $ 114,400 105,600 3,850 The company also has $75,000 of utilities expense, which is an indirect expense to all departments and is allocated to the four departments based on square feet occupied. The Shoes department has 32 employees and the Clothing department has 128 employees. Personnel expense is allocated to operating departments based on the number of employees. Office expense is allocated to operating departments based on sales. 1. Allocate utilities expense to the four departments. 2. Allocate personnel expense to the Shoes and Clothing departments. 3. Allocate office expense to the Shoes and Clothing departments. Utilities Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Personnel Office Shoes Clothing Totals Personnel expense Allocation Base Percent of Allocation Base Cost to be Allocated Allocated Cost Department Numerator Denominator % of Total Shoes Clothing Totals Cost to be Allocated Office expense Percent of Allocation Base Allocated Cost Allocation Base Department Numerator Denominator % of Total Shoes Clothing Totals

Answer rating: 100% (QA)

J11 A B 1 Utilities Allocation base Square feet occupied E Percent of allocation base Numerator Deno... View the full answer