Sure, let's calculate the overhead expense for each department step-by-step.
### Step 1: Define the total sales
First, we need to find the total sales across all departments.
[tex]\[
\text{Total Sales} = \text{NCS Sales} + \text{CCNS Sales} + \text{CCLES Sales}
\][/tex]
Given data:
- New Customer Sales (NCS) = \[tex]$4,830,000
- Current Customer New Sales (CCNS) = \$[/tex]4,830,000
- Current Customer Loan Extension Sales (CCLES) = \[tex]$4,140,000
\[
\text{Total Sales} = 4,830,000 + 4,830,000 + 4,140,000 = 13,800,000
\]
### Step 2: Calculate the overhead expense for each department
We need to distribute the total overhead amount (\$[/tex]55,000) proportionally based on each department's sales.
#### Overhead for New Customer Sales (NCS)
[tex]\[
\text{Overhead}_{\text{NCS}} = \left(\frac{\text{NCS Sales}}{\text{Total Sales}}\right) \times \text{Total Overhead}
\][/tex]
[tex]\[
\text{Overhead}_{\text{NCS}} = \left(\frac{4,830,000}{13,800,000}\right) \times 55,000
\][/tex]
[tex]\[
\text{Overhead}_{\text{NCS}} = 19,250
\][/tex]
#### Overhead for Current Customer New Sales (CCNS)
[tex]\[
\text{Overhead}_{\text{CCNS}} = \left(\frac{\text{CCNS Sales}}{\text{Total Sales}}\right) \times \text{Total Overhead}
\][/tex]
[tex]\[
\text{Overhead}_{\text{CCNS}} = \left(\frac{4,830,000}{13,800,000}\right) \times 55,000
\][/tex]
[tex]\[
\text{Overhead}_{\text{CCNS}} = 19,250
\][/tex]
#### Overhead for Current Customer Loan Extension Sales (CCLES)
[tex]\[
\text{Overhead}_{\text{CCLES}} = \left(\frac{\text{CCLES Sales}}{\text{Total Sales}}\right) \times \text{Total Overhead}
\][/tex]
[tex]\[
\text{Overhead}_{\text{CCLES}} = \left(\frac{4,140,000}{13,800,000}\right) \times 55,000
\][/tex]
[tex]\[
\text{Overhead}_{\text{CCLES}} = 16,500
\][/tex]
### Summary
Based on our computations, the overhead expenses for each department are as follows:
[tex]\[
\begin{tabular}{|l|r|}
\hline
Department & Overhead Expense \\
\hline
New Customer Sales (NCS) & \$19,250 \\
\hline
Current Customer New Sales (CCNS) & \$19,250 \\
\hline
Current Customer Loan Extension Sales (CCLES) & \$16,500 \\
\hline
\end{tabular}
\][/tex]
These calculations show the distribution of the \$55,000 total overhead across the three departments, proportionate to their respective sales figures.
