A company has three departments: X, Y, and Z. It incurs a total utility expense of $60,000 for the year. The utility cost is to be allocated to each department based on the square footage occupied by each. The square footage is as follows: Department X: 12,000 sq. ft. ⚫ Department Y: 18,000 sq. ft. Department Z: 30,000 sq. ft. Allocate the utility expense to Department Y based on square footage (Do not round intermediate steps).

A company has three departments: X, Y, and Z. It incurs a total utility expense of $60,000 for the year. The utility cost is to be allocated to each department based on the square footage occupied by each. The square footage is as follows: Department X: 12,000 sq. ft. ⚫ Department Y: 18,000 sq. ft. Department Z: 30,000 sq. ft. Allocate the utility expense to Department Y based on square footage (Do not round intermediate steps).

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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