The amount of janitorial department cost
The dollar 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 direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is:
$9,000
Expected delivery within 24 Hours
Sauders uses the step-down method of cost allocation and allocates cost on the basis of employees. Human Resources cost amounts to $1,200,000, and the department provides more service to the firm than Cafeteria.
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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 foll.owing information.
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