A shopping mall has three stores, X, Y, and Z, and incurs common utility expenses that benefit all stores. The utility expenses totaled $36,000 for the year, and store revenues were as follows. Allocate utility expenses to Store Y based on store revenues. (Do not round the intermediate calculations.) Store X $95,000|| Store Y 142,500 Store Z 162,500 Total 400,000

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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A shopping mall has three stores, X, Y, and Z, and incurs common utility
expenses that benefit all stores. The utility expenses totaled $36,000 for the year,
and store revenues were as follows. Allocate utility expenses to Store Y based on
store revenues. (Do not round the intermediate calculations.)
Store X $95,000||
Store Y 142,500
Store Z 162,500
Total
400,000
Transcribed Image Text:A shopping mall has three stores, X, Y, and Z, and incurs common utility expenses that benefit all stores. The utility expenses totaled $36,000 for the year, and store revenues were as follows. Allocate utility expenses to Store Y based on store revenues. (Do not round the intermediate calculations.) Store X $95,000|| Store Y 142,500 Store Z 162,500 Total 400,000
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