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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