The city of Dilworth spends $ 1 0 0 , 0 0 0 a year on janitorial
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Question:
The city of Dilworth spends $ a year on janitorial services for city buildings. Rather than set up a separate funding source for janitorial services, the city would prefer to pass along the costs to its four departments and its city council as an indirect cost. The city added up the total number of hours worked in a year by its janitors and found it to be hours. The city also found that the number of hours spent by the janitors on the different department offices over the past year were:
Public Safety: hours
Management: hours
Streets & Sanitation: hours
Recreation: hours
City Council: hours
What is the cost pool? What is the cost base? What dollar amount in indirect costs should be allocated to each department as well as the city council? Please explain your calculations.
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ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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