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Exercise 22-4 (Algo) Payroll expense allocated to departments LO P2 Mia works in both the jewelry department and the cosmetics department of a retail store.

Exercise 22-4 (Algo) Payroll expense allocated to departments LO P2

Mia works in both the jewelry department and the cosmetics department of a retail store. She assists customers in both departments and organizes merchandise in both departments. The store allocates her wages between the two departments based on the time worked in the two departments in each two-week pay period. Mia reports the following hours and activities spent in the two departments in the most recent two weeks. Allocate Mias $1,740 of wages for two weeks to the two departments.

Activities Hours
Selling in jewelry department 41
Organizing in Jewelry department 16
Selling in cosmetics department 15
Organizing in Cosmetics department 4
Total 76

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Department Hours worked Percent of Hours worked Wages Cost Allocated Numerator Denominator Percent of hours Jewelry Cosmetics Totals

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