Business
Engineering
Math
Science
Social Science
ALLOCATING OPERATING EXPENSE—SQUARE FEET Weaverling Company rents 10,000 square feet of store space for $36,000 per year. The amount of square footage by department is as follows: Allocate the annual rent expense among the four departments on the basis of relative square feet of floor space occupied.
College Accounting, Chapters 1-27
Solutions
College Accounting, Chapters 1-27
ALLOCATING OPERATING EXPENSE—SQUARE FEET Weaverling Company rents 10,000 square feet of store space for $36,000 per year. The amount of square footage by department is as follows:
Allocate the annual rent expense among the four departments on the basis of relative square feet of floor space occupied.
Compute the amount of annual rent expense allocated to each of the four departments, based on square feet of floor space used.
Explanation of Solution
Indirect expenses: The expenses that are not directly related to the operations of one department alone, or related to joint or associated departments, are referred to as indirect expenses.
Compute the amount of annual rent expense allocated to each of the four departments, based on square feet of floor space used.
| Department | Square Feet | Percentage of Total Square Feet | × | Annual Rent Expense | = | Allocated Cost |
| Department A | 2,600 | × | $36,000 | = | $9,360 | |
| Department B | 2,400 |
Chapter 25 Solutions
Additional Business Textbook Solutions
Accounting Information Systems
Financial & Managerial Accounting
Financial And Managerial Accounting
Financial Accounting
Corporate Financial Accounting
Brief Principles of Macroeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Foundations of Business (MindTap Course List)
Principles of Economics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Management, Loose-Leaf Version
Fundamentals of Financial Management (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Essentials of Economics (MindTap Course List)
Contemporary Marketing
College Accounting (Book Only): A Career Approach
Financial & Managerial Accounting
Financial Accounting
Accounting Information Systems
Intermediate Accounting: Reporting And Analysis
Managerial Accounting: The Cornerstone of Business Decision-Making
Economics:
MKTG 12:STUDENT ED.-TEXT
College Accounting (Book Only): A Career Approach
Accounting (Text Only)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Exploring Economics
Statistics for Business & Economics, Revised (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Survey of Accounting (Accounting I)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Corporate Financial Accounting
Microeconomics
Purchasing and Supply Chain Management
Cornerstones of Cost Management (Cornerstones Series)
Practical Management Science
Economics For Today
Macroeconomics
Economics (MindTap Course List)
Managerial Accounting
Cornerstones of Financial Accounting
Principles of Microeconomics
Microeconomics: Private and Public Choice (MindTap Course List)
Micro Economics For Today
Macroeconomics: Private and Public Choice (MindTap Course List)
Understanding Management (MindTap Course List)
MACROECONOMICS FOR TODAY
Economics: Private and Public Choice (MindTap Course List)
