University of Minnesota allocates all maintenance department costs based on departmental square feet. Calculate the maintenance under
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Question:
University of Minnesota allocates all maintenance department costs based on departmental square feet. Calculate the maintenance under the current method and under the ABC approach. Assume that the administration costs are still allocated based on square feet. Assume that you are the manager of the Bookstore. Make a pitch to the Finance Manager of UMN on which method you would prefer and why?
Expert Answer:
Current Allocation Method Based on Square Feet Maintenance Department Costs 1000000 Square Feet Bookstore 5000 sq ft Library 10000 sq ft Administratio... View the full answer
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