The company also has $64,000 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 9 employees and the Clothing department has 3 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.

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To allocate utilities expense to the four departments we need to first determine the percentage o... View the full answer