The Following Information Is Available for Charter Company Complete the Following Chart to Determine the Total Cost for |

question 123

Essay

The following information is available for Charter Company:
$$\begin{array} { | c | r | r | r | } \hline { \text { Item } } & \text { Department1 } & \text { Department 2 } & { \text { Total } } \\\hline \text { Equipment value } & \$ 500,000 & \$ 250,000 & \$ 750,000 \\\hline \text { Square footage } & 25,000 \text { sq.ft. } & 35,000 \text { sq.ft. } & 60,000 \text { sq.ft } \\\hline \text { Sales } & \$ 1,250,000 & \$ 725,000 & \$ 1,975,000 \\\hline\end{array}$$
Complete the following chart to determine the total cost for each department,using the most appropriate method to apportion the indirect costs.
$$\begin{array} { | l | r | r | r | } \hline { \text { Cost } } & \text { Department 1 } & \text { Department 2 } & { \text { Total } } \\\hline \text { Depreciation } & & & \$ 120,000 \\\hline \text { Utilities } & & & \$ 45,000 \\\hline \text { Sales Commissions } & & & \$ 59,250 \\\hline \text { Rent } & & & \$ 150,000 \\\hline \text { TOTALS } & & & \$ 374,250 \\\hline\end{array}$$

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Definitions:

Persistence

refers to the enduring existence or continual occurrence of a characteristic, condition, or effect over a long period.

Biologically Magnified

Refers to the process by which certain harmful substances, such as pesticides or heavy metals, increase in concentration as they move up the food chain.

DDT

Dichloro-diphenyl-trichloroethane, a synthetic pesticide known for its environmental persistence and effects on wildlife.

Parathion

A highly toxic organophosphate pesticide used to control insects in agricultural settings.