Canfield Technical School allocates administrative costs to
Canfield Technical School allocates administrative costs to Its respective departments based on the number of students enrolled. while maintenance and utilities are allocated per square feet of the classrooms. Based on the Information below, what is the total amount of administrative cost to the Accounting Department (rounded to the nearest dollan If adminlstrative costs for the school were $92,000 maintenance fees were $16/200 and utlities were $8,100? DepartmentStudents Classrooms 12100 sa. f 14100 sa. ft Electrica162 Welding 91 Accounting1010alsal ft Carpentry618oolsal ft Total 385 44.400 sat o $16,966. D $31280 $32,780 o . $42 301 o $20,928.
Solution
Correct answer is option A.$16,966
Calculation of total amount of administration cost toAccountong department.
Since the allocation is based on Number of students,
Total amount of administration cost toAccountong department =Total admimistration cost of school*[ No.of student in Accounting department / Total No.of students]
=92,000*71/385
=$16,966
