Homework Answers
Total overhead = $90000
Department A ratio = square feet of A/Total square feet
10000/(10000+30000)= 0.25
Department B ratio = square feet of B/Total square feet
30000/(10000+30000)= 0.75
Department A overhead = Total overhead * ratio
90000*0.25
=22500
Department B overhead = Total overhead * ratio
90000*0.75
=67500
ratio overhead allocated
A 0.25 22500
B 0.75 67500
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