Question
9. Pepper Department store allocates its service department expenses to its various operating (sales) departments. The...
9. Pepper Department store allocates its service department
expenses to its various operating (sales) departments. The
following data is available for its service departments:
| Expense | Basis for allocation | Amount | |||
| Rent | Square feet of floor space | $ | 32,000 | ||
| Advertising | Amount of dollar sales | $ | 38,000 | ||
| Administrative | Number of employees | $ | 53,000 | ||
The following information is available for its three operating
(sales) departments:
| Department | Square Feet | Dollar Sales | Number of employees | ||||||||
| A | 3,600 | $ | 248,000 | 5 | |||||||
| B | 5,400 | $ | 372,000 | 7 | |||||||
| C | 9,000 | $ | 620,000 | 8 | |||||||
| Totals | 18,000 | $ | 1,240,000 | 20 | |||||||
What is the total expense allocated to Department B?
10. Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100 lots are golf course lots and will sell for $113,000 each; 125 are street frontage lots and will sell for $83,000. The developer acquired the land for $1,980,000 and spent another $1,580,000 on street and utilities improvement. Compute the amount of joint cost to be allocated to the golf course lots using value basis. (Round your intermediate calculation to one decimal place.)
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26. Pleasant Hills Properties is developing a golf course subdivision that includes 225 home lots; 100...
26.
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8400...
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