Question

GIVEN:	Janitorial Dept.	Cafeteria Dept.	Mixing Dept.	Baking Dept.
Square feet	100	200	1500	3000
Employee count	20	30	80	100
Department cost (SAR)	100,000	150,000	400,000	500,000

Required:

Allocate Janitorial and Cafeteria department costs to mixing and baking departments using the direct method. Use square feet for allocating janitorial costs and number of employees for allocating cafeteria department costs.

You must show all your work.

Answer 1

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