The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication.
A) $6,400.
B) $9,900.
C) $8,100.
D) $9,000.
E) $25,600.

Question

The following is a partially completed departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for its four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated to Fabrication. 
A) $6,400. 
B) $9,900. 
C) $8,100. 
D) $9,000. 
E) $25,600.

Quizplus · Accepted Answer

$18,000 × 3,300/6,000 = $9,900

The Following Is a Partially Completed Departmental Expense Allocation Spreadsheet