In year 1 a company incurred the following indirect costs: Heat and lighting $35,000 Rent and rates $45,000 These costs are apportioned to Department A and Department B on the basis of floor area occupied. A occupies 10,000 square meters and B occupies 5,000 square meters. In year 2 the indirect costs will rise by 20% and the size of the building will be increased by one third. Department C will occupy the new area. In year 2 how much of the indirect costs will apportioned to Department B?
In year 1 a company incurred the following indirect costs: Heat and lighting $35,000 Rent and rates $45,000 These costs are apportioned to Department A and Department B on the basis of floor area occupied. A occupies 10,000 square meters and B occupies 5,000 square meters. In year 2 the indirect costs will rise by 20% and the size of the building will be increased by one third. Department C will occupy the new area. In year 2 how much of the indirect costs will apportioned to Department B?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....
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