Use the Following Information for the Questions -Based on the Information Given, Determine the Basis for the Two

question 52

Essay

Use the following information for the questions. Bamboozle Solutions has two departments, A and B. The total indirect expenses by category are given as are the Cost of the Assets, information on Square Feet, and the amount of Sales for each department.
$\begin{array}{lr}\text { Indirect Expense } &{\text { Total }} \\\text { Insurance Expense } & \$ 32,000 \\\text { Rent Expense } & 36,000 \\\text { Utilities Expense } & 15,000 \\\text { Office Salaries Expense } & 78,000 \\\text { Other Office Expense } & 4,000 \\\text { Uncollectible Accounts Expense } & 21,000\end{array}$
-Based on the information given, determine the basis for the allocation (value of the assets Equipment and Inventory; square feet of space; or sales)of each expense that will be allocated to the departments.

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Definitions:

Licensing Agreement

A legally binding contract in which a licensor grants a licensee the right to use, produce, or sell its intellectual property in exchange for compensation.

Production Facility

A place equipped for industrial production of goods or extraction of natural resources.

Negotiable

Refers to the quality of a document or instrument that allows it to be transferred or endorsed to another party, thus enabling the recipient to claim the rights specified in the document.

Authorized Agent

An individual or entity that has been given legal authorization to act on behalf of another person or entity in conducting business or legal affairs.