Cost center allocations by employees and square feet

Assignment Help Managerial Accounting

Reference no: EM1348504

Cost center 1. Cost center 2

Total costs. $20,000. $30,000

Sq ft. 50. 200

# of employers 1. 2

Profit center 1. Profit center. 2

Profit before cost center. $40,000. $25,000

Sq. Ft. 500. 300

# of employers. 4. 15

The company allocates cost center 1 by sq ft. And cost center 2 by # of employers

Calculate profit of each center if company uses the direct allocation method

Calculate the profit of each center if the company allocates cost center 1 first and then cost center 2

Reference no: EM1348504

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