Question: You are tasked with analyzing different cost allocation methods for LMN Corporation. Use the following data: Cost Category Total Cost ($) Allocation Method Maintenance $80,000
You are tasked with analyzing different cost allocation methods for LMN Corporation. Use the following data:
| Cost Category | Total Cost ($) | Allocation Method |
|---|---|---|
| Maintenance | $80,000 | Square Footage |
| Utilities | $60,000 | Number of Employees |
| Depreciation | $50,000 | Asset Value |
Requirements:
- Allocate costs using the square footage, number of employees, and asset value methods.
- Calculate the total allocated costs for each method.
- Present the analysis in a detailed table format.
- Discuss the suitability of each method for cost allocation.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
