Gomez Company has two service departments (Personnel and Office) and two operating departments (Shoes and Clothing). Following are the direct expenses and square feet occupied by the four departments, and the total sales for the two operating departments. Department Personnel Office Shoes Clothing Direct Expenses Square Feet $ 10,000 36,000 105,000 12,000 560 700 2,590 3,150 Sales $ 296,400 83,600 The company also has $69,000 of utilities expense, which is an indirect expense to all departments and is allocated to the four departments based on square feet occupied. The Shoes department has 66 employees and the Clothing department. has 154 employees. Personnel expense is allocated to operating departments based on the number of employees. Office expense is allocated to operating departments based on sales. 1. Allocate utilities expense to the four departments. 2. Allocate personnel expense to the Shoes and Clothing departments. 3. Allocate office expense to the Shoes and Clothing departments.
Gomez Company has two service departments (Personnel and Office) and two operating departments (Shoes and Clothing). Following are the direct expenses and square feet occupied by the four departments, and the total sales for the two operating departments. Department Personnel Office Shoes Clothing Direct Expenses Square Feet $ 10,000 36,000 105,000 12,000 560 700 2,590 3,150 Sales $ 296,400 83,600 The company also has $69,000 of utilities expense, which is an indirect expense to all departments and is allocated to the four departments based on square feet occupied. The Shoes department has 66 employees and the Clothing department. has 154 employees. Personnel expense is allocated to operating departments based on the number of employees. Office expense is allocated to operating departments based on sales. 1. Allocate utilities expense to the four departments. 2. Allocate personnel expense to the Shoes and Clothing departments. 3. Allocate office expense to the Shoes and Clothing departments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Gomez Company has two service departments (Personnel and Office) and two operating departments (Shoes and Clothing). Following are the direct expenses and square feet occupied by the four departments, and the
total sales for the two operating departments. Department Personnel Office Shoes Clothing Direct Expenses $10,000 36,000 105,000 12,000 Square Feet 560 700 2,590 3,150 Sales $296,400 83,600 The company also
has $69,000 of utilities expense, which is an indirect expense to all departments and is allocated to the four departments based on square feet occupied. The Shoes department has 66 employees and the Clothing
department has 154 employees. Personnel expense is allocated to operating departments based on the number of employees. Office expense is allocated to operating departments based on sales. 1. Allocate utilities
expense to the four departments. 2. Allocate personnel expense to the Shoes and Clothing departments. 3. Allocate office expense to the Shoes and Clothing departments.
Gomez Company has two service departments (Personnel and Office) and two
operating departments (Shoes and Clothing). Following are the direct expenses and
square feet occupied by the four departments, and the total sales for the two
operating departments.
Department Direct Expenses Square Feet
Personnel
$ 10,000
36,000
105,000
12,000
Office
Shoes
Clothing
560
700
2,590
3,150
Sales
$ 296,400
83,600
The company also has $69,000 of utilities expense, which is an indirect expense to
all departments and is allocated to the four departments based on square feet
occupied. The Shoes department has 66 employees and the Clothing department
has 154 employees. Personnel expense is allocated to operating departments based
on the number of employees. Office expense is allocated to operating departments
based on sales.
1. Allocate utilities expense to the four departments.
2. Allocate personnel expense to the Shoes and Clothing departments.
3. Allocate office expense to the Shoes and Clothing departments.
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