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  3. week 3 quiz for chapters 5 and 6 clark inc. has

Week 3 Quiz for chapters 5 and 6 Clark Inc. has 3 operating...

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Accounting

Week 3 Quiz for chapters 5 and 6

Clark Inc. has 3 operating departmentscommercial, industry, and private for which the corporate office provides 2 kinds of services, accounting, and housekeeping. Accounting costs are allocated on the basis of number of employees, and housekeeping costs are allocated based on the basis of number of square feet.

Direct costs

# of Square feet

# of Employees

Accounting

$ 56,000

2,000

10

Housekeeping

33,000

3,000

5

Commercial

116,000

6,000

35

Industry

124,000

4,000

40

Private

105,000

8,000

25

How much total cost will Clark, Inc. allocate to the commercial department?

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