Question

2. Our four stores are supported by three service departments. Cost and operational data for each department follow: (Hint: Remember you need to use totals) Stores Salaries Sq. Footage PO's Issued $92,160 69,120 80,640 46,080 1,728 3,024 1,296 2,592 1,260 1,680 2,310 1,750 Totals Service Depts. HR Maintenance Purchasing Allocation Basis Salaries Sq. Footage Number of PO's Costs $10,000 6,900 12,000 Determine the service expenses to be allocated to Store 1 for: HR Maintenance Purchasing

Answer 1

Service expense allocated

		Service expense allocated
HR	92160/288000*10000	3200
Maintenance	1728/8640*6900	1380
Purchasing	1260/7000*12000	2160