Solve the Problem: Assuming that you have two departments in this Rehabilitation Center, PT and OT. The cleaning crew that services the building spends 30% of their time in PT, and 70% in OT due to the square footage that each department uses. What would be the allocation be to PT if the total annual cost of housekeeping is $20,000?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
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Problem 5CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...
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Solve the Problem:
Assuming that you have two departments in this Rehabilitation
Center, PT and OT. The cleaning crew that services the
building spends 30% of their time in PT, and 70% in OT
due to the square footage that each department uses.
What would be the allocation be to PT if the total annual
cost of housekeeping is $20,000?
Transcribed Image Text:Solve the Problem: Assuming that you have two departments in this Rehabilitation Center, PT and OT. The cleaning crew that services the building spends 30% of their time in PT, and 70% in OT due to the square footage that each department uses. What would be the allocation be to PT if the total annual cost of housekeeping is $20,000?
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