The following situations provide practice in allocating monthly overhead expenses at a central office. From the information given in the following table, complete the allocations indicated in problems 3 through 6. Remember: Answers for each problem should sum to the total monthly overhead expense. (for each correct answer)
Monthly Overhead Expense |
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| Location |
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| |
| Basis of Allocation | East | West | North | South | TOTAL | |
Insurance | $20,000 | Square feet | 19,200 | 9,600 | 14,400 | 16,800 | 60,000 |
Utilities | 18,000 | Machine hours worked | 32,000 | 12,000 | 20,000 | 16,000 | 80,000 |
Rent | 26,000 | Units produced | 10,200 | 7,800 | 5,700 | 6,300 | 30,000 |
Maintenance | 22,000 | Number of employees | 105 | 75 | 30 | 90 | 300 |
Allocate insurance expense based on the number of square feet at each location.
East __________ ; | West __________ ; | North __________ ; | South __________ | Check. |
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