Asked by stefan quintana on Jul 20, 2024

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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.
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BF
Best for ever AfghanJul 26, 2024
Final Answer :
B
Explanation :
The total square footage is 55,000 (A) + 20,000 (B) + 25,000 (C) = 100,000 square feet. The allocation is based on the proportion of square footage each department has. Department A has 55% (55,000/100,000), B has 20% (20,000/100,000), and C has 25% (25,000/100,000). Therefore, A gets $16,500 (55% of $30,000), B gets $6,000 (20% of $30,000), and C gets $7,500 (25% of $30,000).