Question

Super Grocery store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments:
Expense Basis for allocation Amount
Administrative Square feet of floor space $15,000
Advertising Amount of dollar sales $ 8,000

The following information is available for its three operating (sales) departments:

Square Dollar
Department Feet Sales
Produce 1,000 $80,000
Bakery 800 $30,000
Meats 1,200 $42,000
Totals 3,000 $152,000

What is the total administrative expense allocated to the Meats department?
A.$6,000.
B.$9,000.
C.$4,145.
D.$1,200.
E.$3,000.

Answer

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