Selected data for Miller Company, which operates three departments, follow:
Department A Department B Department C
Inventory $120,000 $432,000 $168,000
Equipment (average cost) $1,080,000 $648,000 $432,000
Payroll $810,000 $720,000 $270,000
Square feet of floor space 18,000 9,000 3,000
During the year, the company's fixed expenses included the following:
Depreciation on equipment $120,000
Real estate taxes 36,000
Personal property taxes (on inventory and equipment) 57,600
Personnel department expenses 40,000
Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed expenses are traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments.
Do not round until your final answer. Round final answer to the nearest whole number.
Department A Department B Department C
Depreciation
Real estate taxes
Personal property taxes
Personnel dept. expenses

Depreciation on equipment (based on average cost of equipment) = Depreciation on equipment * (Average cost of equipment of a department / Total average cost of equipment of the three departments)

Real estate taxes (based on Square feet of floor space) = Real estate taxes * (Square feet of floor space of a department / Total square feet of floor space of the three departments)

Personal property taxes: This is a common cost. It cannot therefore be allocated.

Personnel department expenses (based on payroll) = Personnel department expenses * (Payroll of a department / Payroll of the three departments)