Given Dept A 6000 sq ft Dept B 3000 sq ft and Dept C 1000 sq

Given Dept. A 6,000 sq. ft., Dept. B 3,000 sq. ft. and Dept. C 1,000 sq. ft. The percent of overhead expense applied to Dept. C will be:

Solution

Total area is 6000+3000+1000=10000 sq. ft.

The overhead expenses are assumed to be distributed in proportion to the area of the department

So the percent of overhead expenses applied to Dept. C are:

(1000/10000 )*100=10%