The following situations provide practice in allocating monthly overhead expenses at a central office. From the information given in the following table, complete the allocations indicated in the problem. Remember: Answers for the following problem should sum to the total monthly overhead expense.

Monthly Overhead	Total		Location
Expense	Expense	Basis of Allocation	East	West	North	South	TOTAL
Insurance	$20,000	Square feet	19,200	9,600	14,400	16,800	60,000
Utilities	25,000	Machine hours worked	38,950	14,250	31,350	10,450	95,000
Rent	26,000	Units produced	10,200	7,800	5,700	6,300	30,000
Maintenance	22,000	Number of employees	105	75	30	90	300

Allocate utilities expense based on the number of machine hours worked in each location.

East

West

North

South

Check

Answer rating: 100% (QA)

To allocate the utilities expense based on the number of machine hours worked in each location we ne... View the full answer