Knowee
Questions
Features
Study Tools

InfoTech Horizons has three departments: A, B, and C. The total overheads are $200,000. The overheads are apportioned based on the floor area occupied by each department. Department A occupies 2,000 sq. ft., Department B occupies 3,000 sq. ft., and Department C occupies 5,000 sq. ft. Calculate the overhead apportioned to each department.Question 7Answera.Department A: $140,000Department B: $60,000Department C: $100,000b.Department A: $60,000Department B: $40,000Department C: $100,000c.Department A: $100,000Department B: $60,000Department C: $40,000d.Department A: $40,000Department B: $60,000Department C: $100,000

Question

InfoTech Horizons has three departments: A, B, and C. The total overheads are 200,000.Theoverheadsareapportionedbasedonthefloorareaoccupiedbyeachdepartment.DepartmentAoccupies2,000sq.ft.,DepartmentBoccupies3,000sq.ft.,andDepartmentCoccupies5,000sq.ft.Calculatetheoverheadapportionedtoeachdepartment.Question7Answera.DepartmentA:200,000. The overheads are apportioned based on the floor area occupied by each department. Department A occupies 2,000 sq. ft., Department B occupies 3,000 sq. ft., and Department C occupies 5,000 sq. ft. Calculate the overhead apportioned to each department.Question 7Answera.Department A: 140,000Department B: 60,000DepartmentC:60,000Department C: 100,000b.Department A: 60,000DepartmentB:60,000Department B: 40,000Department C: 100,000c.DepartmentA:100,000c.Department A: 100,000Department B: 60,000DepartmentC:60,000Department C: 40,000d.Department A: 40,000DepartmentB:40,000Department B: 60,000Department C: $100,000

...expand
🧐 Not the exact question you are looking for?Go ask a question

Solution

First, we need to calculate the total floor area occupied by all departments. This is done by adding the floor areas of Department A, B, and C together:

2,000 sq. ft. (Department A) + 3,000 sq. ft. (Department B) + 5,000 sq. ft. (Department C) = 10,000 sq. ft. (Total)

Next, we need to determine the proportion of the total floor area that each department occupies. This is done by dividing the floor area of each department by the total floor area:

Department A: 2,000 sq. ft. / 10,000 sq. ft. = 0.2 (20%) Department B: 3,000 sq. ft. / 10,000 sq. ft. = 0.3 (30%) Department C: 5,000 sq. ft. / 10,000 sq. ft. = 0.5 (50%)

Finally, we multiply the total overheads ($200,000) by the proportion of the total floor area that each department occupies to find the overhead apportioned to each department:

Department A: 200,000∗0.2=200,000 * 0.2 = 40,000 Department B: 200,000∗0.3=200,000 * 0.3 = 60,000 Department C: 200,000∗0.5=200,000 * 0.5 = 100,000

So, the correct answer is:

d. Department A: 40,000DepartmentB:40,000 Department B: 60,000 Department C: $100,000

This problem has been solved

Similar Questions

Personnel expenses would most likely be allocated to operating departments using which allocation base?Multiple choice question.Sales dollars generatedNumber of employeesSquare feet of floor space occupiedPurchase orders processed

A+ Ltd’s overhead consists of two types of expenditure, namely rent ($72,000) and delivery ($25,200). 9,200 and 8,800 square foot of space are occupied by product A and B respectively. During the year, there were 28,000 orders for delivery of product A while there were 1,400 orders for product B. Allocate the delivery overhead to each product.Question 7

A company has sales of $106,000; cost of goods sold of $68,370; and total direct expenses of $7,320. The department’ contribution to overhead is:

Multiple Choice QuestionLanden Company uses a single plantwide overhead rate of $100 per direct labor hour (DLH). Landen has two products as follows: basic chairs which used 20 DLH and deluxe chairs which used 35 DLH. What is the total amount allocated to these products?Multiple choice question.$3,500$1,500$2,000$5,500

Which service department is most likely to use square feet of floor space occupied as the allocation base to assign its costs to operating departments?Multiple choice question.PersonnelMaintenanceAdvertisingPayroll

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.