10. LotCo has a Maintenance Department and a HR Department that provide services to three Sales Departments. The Maintenance Department cost is allocated based on space and the HR Department cost is allocated on employees. The following information is available. Sales Dept. #1 Sales Dept. #2 Sales Dept. #3 Budget Space (sqm) # of Employees Maintenance HR Dept. Dept. $ 45,000 $ 30,000 4,000 1,000 5 20.000 15 30,000 45 10 50,000 30 Using the step-down method, calculate the amount of HR Department cost allocated to Sales Department #2, if the HR Department is allocated first. a. $6,750 b. $13,500 c. $12,000 d $20,250 11. Consider the following statements about the two-stage cost allocation process in a single-product manufacturing division. i. Costs in various cost pools are distributed to all departments, including support and production departments. Support department costs are allocated to production departments. iii. Direct and indirect production department costs are assigned to the product. ii. Which statement/s is/are correct? a. i, ii and iii b. i and ii C. iii dii 12. With a unit selling price of $26 and variable costs of $25 per unit and total fixed costs of $5,000, how many units would have to be sold to earn a profit of $10,000? a. 5,000 units b. 10,000 units c. 15,000 units d 20,000 units