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?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 71P
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Financial Accounting

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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