A grocery store needs to allocate overhead expenses of $385 across its three departments based on their sales. If refrigerated foods accounted for $720 in sales, non-refrigerated foods accounted for $984 in sales, and non-food products accounted for $630 in sales, what amount of overhead expenses should be allocated to non-refrigerated foods?

Round to the nearest cent

To allocate the overhead expenses proportionally based on sales, we need to follow these steps:

### Step 1: Calculate the total sales.
\[
\text{Total Sales} = 720 \, (\text{Refrigerated Foods}) + 984 \, (\text{Non-refrigerated Foods}) + 630 \, (\text{Non-food Products})
\]
\[
\text{Total Sales} = 720 + 984 + 630 = 2334
\]

### Step 2: Find the percentage of total sales from non-refrigerated foods.
\[
\text{Percentage of Non-refrigerated Foods Sales} = \frac{984}{2334}
\]

### Step 3: Allocate the overhead expenses to non-refrigerated foods.
\[
\text{Overhead for Non-refrigerated Foods} = 385 \times \frac{984}{2334}
\]

Now, let's compute these values:

\[
\frac{984}{2334} \approx 0.4216
\]
\[
\text{Overhead for Non-refrigerated Foods} = 385 \times 0.4216 \approx 162.41
\]

Thus, the overhead expenses allocated to non-refrigerated foods is **$162.41**.

Would you like further details or have any questions?

Here are 5 related questions:
1. How are overhead expenses typically allocated in businesses?
2. What happens if a department's sales change over time in terms of overhead allocation?
3. How would the allocation change if total expenses increased?
4. What percentage of the total sales did non-food products contribute?
5. Why is it important to round to the nearest cent in financial calculations?

**Tip**: When allocating expenses proportionally, always ensure the total allocation sums back to the original amount.

A grocery store needs to allocate overhead expenses of $385 across its three departments based on their sales. If refrigerated foods accounted for $720 in sales, non-refrigerated foods accounted for $984 in sales, and non-food products accounted for $630 in sales, what amount of overhead expenses should be allocated to non-refrigerated foods?

Discover how to allocate overhead expenses of $385 across departments based on sales. With refrigerated foods sales at $720, non-refrigerated foods at $984, and non-food products at $630, find the overhead allocated to non-refrigerated foods. This proportional allocation problem is suitable for students in Grades 6-8.

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