Asked by stefan quintana on Jul 20, 2024
Verified
Windermere Corporation has 55,000 square feet in department A; 20,000 square feet in department B; and 25,000 square feet in department C. Janitorial services are based on square footages in each department. How will the $30,000 of janitorial services be allocated? (Round your answer to the nearest dollar.)
A) $16,500 to C; $6,000 to B; and $7,500 to A.
B) $16,500 to A; $6,000 to B; and $7,500 to C.
C) Split evenly ($10,000.00) to each department.
D) Cannot be determined by given information.
Janitorial Services
A category of services that includes cleaning, maintaining, and often securing commercial or residential buildings.
Square Footages
A measurement of area used to determine the size of a space, often used in real estate and construction for billing or planning purposes.
Allocated
The process of distributing resources or costs among different departments, activities, or products.
- Comprehend the approach to assign indirect expenses utilizing multiple benchmarks such as square footage, gross sales, and goods shipped.
- Estimate the allocation of costs among various departments utilizing appropriate allocation principles.
Verified Answer
Learning Objectives
- Comprehend the approach to assign indirect expenses utilizing multiple benchmarks such as square footage, gross sales, and goods shipped.
- Estimate the allocation of costs among various departments utilizing appropriate allocation principles.
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