Matilda has decided to allocate $12,000 of indirect costs to her cafe and bar operations based on square footage used. The cafe occupies 2,200 square feet and the bar occupies 580 square feet. How much of the $12,000 of indirect costs will be allocated to the cafe?

Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter2: Basic Cost Management Concepts
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Matilda has decided to allocate $12,000 of
indirect costs to her cafe and bar operations
based on square footage used. The cafe
occupies 2,200 square feet and the bar
occupies 580 square feet. How much of the
$12,000 of indirect costs will be allocated to
the cafe?
Transcribed Image Text:Matilda has decided to allocate $12,000 of indirect costs to her cafe and bar operations based on square footage used. The cafe occupies 2,200 square feet and the bar occupies 580 square feet. How much of the $12,000 of indirect costs will be allocated to the cafe?
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