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How much cleaning expense should be allocated

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Question - Calico Company has two operating departments: Department A and Department B. Department A occupies 30% of the floor space of the company but accounts for 75% of the sales of the company. Department B occupies 70% of the floor space of the company but accounts for 25% of company sales. Cleaning expense (an indirect expense of the company), which consists primarily of vacuuming the carpet is $30,000 each year. How much cleaning expense should be allocated to Department B?

$0

$7,500

$9,000

$21,000

$22,500

$30,000

Reference no: EM131665590

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