Hawaii's SurfingViews Hotel has three selling departments: rooms, restaurants and bars. Some of SurfingViews' indirect operating...

 

Transcribed Image Text:

Hawaii's SurfingViews Hotel has three selling departments: rooms, restaurants and bars. Some of SurfingViews' indirect operating expenses are allocated to the three departments in the following manner. Allocation basis Total expense to be allocated Indirect expense Floor space $90,000 Rent Sales $20,000 Advertising Net book value of assets $45,000 Depreciation Personnel department Salaries and wages $100,000 The hotel's accountant has collected the following information in connection with the hotel's indirect cost allocation exercise. Rooms Restaurants Bars 350 100 50 Floor space in square metres Sales $1,150,000 $250,000 $100,000 $900,000 $200,000 $100,000 Net book value of fixed assets $250,000 $210,000 $40,000 Salaries and wages Required: Calculate the amount of indirect expense to be allocated to each department. Hawaii's SurfingViews Hotel has three selling departments: rooms, restaurants and bars. Some of SurfingViews' indirect operating expenses are allocated to the three departments in the following manner. Allocation basis Total expense to be allocated Indirect expense Floor space $90,000 Rent Sales $20,000 Advertising Net book value of assets $45,000 Depreciation Personnel department Salaries and wages $100,000 The hotel's accountant has collected the following information in connection with the hotel's indirect cost allocation exercise. Rooms Restaurants Bars 350 100 50 Floor space in square metres Sales $1,150,000 $250,000 $100,000 $900,000 $200,000 $100,000 Net book value of fixed assets $250,000 $210,000 $40,000 Salaries and wages Required: Calculate the amount of indirect expense to be allocated to each department.

Answer rating: 100% (QA)

The same with Excel formulas shown A D E F G Total expense to be Indirect Expen... View the full answer