# Computation of square footage for all cost centers is

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Unformatted text preview: supervised Cost per person supervised Distributed to Administration (2 x \$5,000) Distributed to Maintenance (1 x \$5,000) Total distributed \$15,000 3 \$5,000 \$10,000 5,000 \$15,000 The conclusion of this analysis is that \$5,000 of the supervisor’s salary should be distributed to the maintenance department. As a result, the following adjustments must be made to our costs: Cost center Maintenance Administration Mowing (no adjustment) Special Projects (no adjustment) Total Cost \$ 30,000 49,425 73,575 47,000 \$200,000 (\$25,000+\$5,000 for supervisor) (\$54,425 -\$5,000 for supervisor) ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Note that this approach effectively has distributed the supervisor's salary between the two relevant cost centers, based on a distribution formula. Of the \$15,000 salary, \$5,00...
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## This document was uploaded on 03/30/2014.

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