deparment A | department B | department C | common cost | |
depreciation on equipment (based on average cost of equipment) | $140,000*(720,000/1,440,000)=>$70,000 | $140,000*(432,000/1,440,000)=>$42,000 | $140,000*(288,000/1,440,000)=>$28,000 | nil |
real estate taxes (based on feet of floor space) | $48,000*(18,000/30,000)=>$28,800 | $48,000*(9000/30000)=>$14,400 | $48,000*(3000/30000)=>$4800 | nil |
personal property taxes (common cost) cannot be allocated | nil | nil | nil | 28,800 |
personnel department expenses (based on payroll) | $225,000*(405,000/900,000)=>101,250 | $225,000*(360,000/900,000)=>90,000 | $225,000*(135,000/900,000)=>$33,750 | nil |
total cost allocated | $200,050 | $146,400 | $65,550 | 28,800 |
E11-3A. Assigning Traceable Fixed Expenses Selected data for Miller Company, which operates three departments, follow: Inventory............
Assigning Traceable Fixed Expenses Selected data for Colony Company, which operates three departments, follow: Department A Department B Department C Inventory $100,000 $360,000 $140,000 Equipment (average cost) $900,000 $540,000 $360,000 Payroll $607,500 $540,000 $202,500 Square feet of floor space 27,000 13,500 4,500 During the year, the company's fixed expenses included the following: Depreciation on equipment $150,000 Real estate taxes 45,000 Personal property taxes (on inventory and equipment) 72,000 Personnel department expenses 75,000 Assume that the property tax rate is the...