The amount of janitorial department cost allocated to sales
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.
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?
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