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Vortex Company operates a retail store with two departments. Information about those departments follows.
Vortex Company operates a retail store with two departments. Inf
The company also incurred the following indirect costs.
Salaries . . . . . . . . . . . . . . $36,000
Insurance . . . . . . . . . . . . . . 6,000
Depreciation . . . . . . . . . . . 15,000
Office expenses . . . . . . . . 50,000
Indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. Additional information about the departments follows.
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