Question

The centralized computer technology department of Hardy Company has expenses of $78,400. The department has provided a total of 11,200 hours of service for the period. The Retail Division has used 9,856 hours of computer technology service during the period, and the Commercial Division has used 1,344 hours of computer technology service. How much should each division be charged for computer technology department services

How much should each division be charged for computer technology department services?

Answer 1

Expenses to be apportioned to Retail Division $68,992

Expenses apportion to Commercial Division

$9,408

Total Expenses $ 78,400

Explanation:

Hardy Company Computer Technology Dept. expenses to be apportioned to Retail Division and Commercial Division.

Total Expenses $ 78,400

Hours used by Retail Division 9,856

Hours used by Commercial Division 1,344

Total hours put in by Computer Tech Dept. 11,200 Hours

Therefore, expenses to be apportioned to Retail Division

= 9,856/11,200 X $ 78,400

= $68,992

Expenses apportion to Commercial Division

= 1,344/11,200 X $78,400 = $9,408

Total Expenses $ 78,400