1. Indirect Cost Distribution:
- Set up an Indirect Cost Allocation worksheet to distribute your $2,000 Rent Expense (currently sitting in the Administration cost center).
- Use the Fixed Numeric Value basis to allocate the cost based on square footage to the two programs (Youth Services: 2,000 sq ft; Adult Education: 1,000 sq ft).
- Run the Allocation Reports, verify the percentages, and post the automated Journal Entry to distribute the costs.