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.
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| 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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