Question

Joy Co. allocates overhead expenses to all departments on the basis of floor space (sq. ft.) occupied by each department. This year total overhead expenses were $22,000. Department A. occupied 15,000 sq. ft., Department B. 18,000 sq. ft., and Department C. 9,000 sq. ft. The amount of overhead allocated to Department B is (round to the nearest dollar):

Answer 1

The ratio between the departments is

A: B: C
15000 : 18000 : 9000
15 : 18 : 9
5 : 6 : 3

The budget needs to be divided into 5+6+3 = 14 parts
The budget for one part is 22000/14

The budget for department B is
`(22000)/(14)*6=9428.571428`
Rounded to the nearest dollar, the budget is $9429