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: Budgeted cost Space in Square Feet Number of employees Human Resources $ Janitorial 66,000 25,000 15 Sales # 1 Sales #2 $ Sales # 3 51,000 22,000 15 31,000 15 51,000 40 71,000 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: (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount.)
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: Budgeted cost Space in Square Feet Number of employees Human Resources $ Janitorial 66,000 25,000 15 Sales # 1 Sales #2 $ Sales # 3 51,000 22,000 15 31,000 15 51,000 40 71,000 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: (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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:
Budgeted cost
Space in Square
Feet
Number of
employees
Human
Resources
Multiple Choice
$20,294.
$17,217.
$26,400.
$23,294.
$36,000.
$
Janitorial
66,000
25,000
15
Sales Sales
#1
#2
$
en
Sales
#3
51,000
22,000
15
31,000
15
51,000
40
71,000
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: (Do not round your intermediate calculations. Round your
final answer to nearest whole dollar amount.)
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