Business, 23.04.2021 17:40, microwave13016

The Xtra Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available: Human Resources Janitorial Sales #1 Sales #2 Sales #3
Budgeted cost $45,000 $30,000
Space in Square Feet 4,000 1,000 20,000 30,000 50,000
Number of employees 5 10 15 45 30

Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 2 is:

a. $13,500.
b. $20,250.
c. $19,286.
d. $21,316.
e. $22,500.

Answers: 3

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The Xtra Store has a Human Resources Department and a Janitorial Department that provide service to...