So far we have focused most of our attention on the

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Unformatted text preview: ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Answer: Total costs to be allocated = Total salary dollars = Allocation rate = $51,425 $85,000 ($50,000 in mowing + $35,000 in Special Projects) $0.605/salary $ ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• Note that, as specified in the formula above, the denominator for the rate calculation has used only the salary dollars in the two receiving cost centers, i.e., the cost centers to which the administration costs are to be allocated. We have not included the salary dollars for either the Maintenance or Administration cost centers in the denominator of the computation. We can’t use salary dollars from th...
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