
1.a
The allocation of the total annual building cost to each department using the actual usage of the three departments.
b.
The allocation of the total annual building cost of $3,000,000 to each department using the planned office space of the three departments.
c.
The allocation of the total annual building cost of $3,000,000 to each department using the practical capacity of the three departments.
2.a
The allocation of total annual building cost of $3,000,000 when the vacant office space is absorbed by the university and is not allocated to the departments.
b.
The allocation of all occupied office space costs on the basis of the actual square foot use by the department.
c.
The allocation of all common area costs on the basis of the department’s practical capacity, calculate the costs allocated to each department under this plan and the appropriate method for this.

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Chapter 15 Solutions
Cost Accounting: A Managerial Emphasis, 15th Edition
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