Horizon Industries has a partially completed departmental expense allocation spreadsheet that reports the total amounts of direct and indirect expenses for its four departments. The purchasing department expenses are allocated to the operating departments based on total purchases made by each. Given the following data: • Total Purchasing Department expenses: $48,000 Purchases by Department A: $120,000 • Purchases by Department B: $80,000 Purchases by Department C: $100,000 Calculate the amount of Purchasing Department expenses allocated to Department C. A) $14,400 B) $16,000 C) $18,000 D) $20,000
Horizon Industries has a partially completed departmental expense allocation spreadsheet that reports the total amounts of direct and indirect expenses for its four departments. The purchasing department expenses are allocated to the operating departments based on total purchases made by each. Given the following data: • Total Purchasing Department expenses: $48,000 Purchases by Department A: $120,000 • Purchases by Department B: $80,000 Purchases by Department C: $100,000 Calculate the amount of Purchasing Department expenses allocated to Department C. A) $14,400 B) $16,000 C) $18,000 D) $20,000
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter25: Departmental Accounting
Section: Chapter Questions
Problem 5SEA: COMPUTING OPERATING INCOME The sales, cost of goods sold, and total operating expenses of...
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Transcribed Image Text:Horizon Industries has a partially completed departmental expense
allocation spreadsheet that reports the total amounts of direct and
indirect expenses for its four departments. The purchasing
department expenses are allocated to the operating departments
based on total purchases made by each.
Given the following data:
• Total Purchasing Department expenses: $48,000
Purchases by Department A: $120,000
• Purchases by Department B: $80,000
Purchases by Department C: $100,000
Calculate the amount of Purchasing Department expenses allocated
to Department C.
A) $14,400
B) $16,000
C) $18,000
D) $20,000
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