Super Grocery Store Allocates Its Service Department Expenses to Its

question 38

Multiple Choice

Super Grocery store allocates its service department expenses to its various operating (sales) departments. The following data is available for its service departments: $\begin{array}{llc}\text { Expense } & \text { Basis for allocation } & \text { Amount } \\\text { Administrative } & \text { Square feet of floor space } & \$ 15,000 \\\text { Advertising } & \text { Amount of dollar sales } & \$ 8,000\end{array}$

The following information is available for its three operating (sales) departments:

$\begin{array}{lcc}\text { Department } &\text { Square }&\text { Dollar Sales } \\&\text { Feet }\\ \text { Produce } & 1,000 & \$ 80,000 \\ \text { Bakery } & 800 & \$ 30,000 \\ \text { Meats } & 1,200 & \$ 42,000 \\ \text { Totals } & 3.000 & \$ 152,000 \\\end{array}$
What is the total administrative expense allocated to the Meats department?

• A) $1,200.
• B) $6,000.
• C) $9,000.
• D) $3,000.
• E) $4,145.

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Definitions:

Vote-Seeking Politicians

Politicians who prioritize actions and policies that are likely to appeal to voters, aiming to secure electoral success.

General Welfare

The overall health, prosperity, and contentment of a community or nation, often considered a government's primary goal.

Private Producers

Individuals or companies that produce goods or services in an economy that are not owned by the state.