Jessica Porter works in both the jewelry department and the hosiery department of a retail store. Porter assists customers in both departments and arranges and stocks merchandise in both departments. The store allocates Porter’s $30,000 annual wages between the two departments based on a sample of the time worked in the two departments. The sample is obtained from a diary of hours worked that Porter kept in a randomly chosen two-week period. The diary showed the following hours and activities spent in the two departments. Allocate Porter’s annual wages between the two departments.

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Selling in jewelry department.. Arranging and stocking merchandise in jewelry department Selling in hosiery department Arranging and stocking merchandise in hosiery department Idle time spent waiting for a customer to enter one of the selling departments 51 hours 6 hours 12 hours 7 hours 4 hours