How to allocate each time


AC Consulting Company has purchased a new $15,000 copier. This overhead cost will be shared by the purchasing, accounting, and information technology departments since those are the only departments which will be able to access the machine. The company has decided to allocate the cost based on the number of copies made by each department. The copier is estimated to provide 1 million copies over its life. Each department has estimated the number of copies which will be made in their department over the life of the copier.Department.How much overhead will be allocated each time a copy is made if cost allocations are computed to 4 significant digits?

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Accounting Basics: How to allocate each time
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