Department A had total sales of $68,400 and Department B had total sales of $39,900. Other Office Expenses, totaling $3,800, are allocated to the departments based on total sales. The amount of Other Office Expense allocated to Department A is: (Do not round your intermediate calculations.)

Department A had total sales of $68,400 and Department B had total sales of $39,900. Other Office Expenses, totaling $3,800, are allocated to the departments based on total sales. The amount of Other Office Expense allocated to Department A is: (Do not round your intermediate calculations.)

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter25: Departmental Accounting

Section: Chapter Questions

Problem 2CE

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Department A had total sales of $68,400 and Department B had total sales of
$39,900. Other Office Expenses, totaling $3,800, are allocated to the
departments based on total sales. The amount of Other Office Expense
allocated to Department A is: (Do not round your intermediate calculations.)

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