Question
Favorite Department Store has three sales departments (Mens, Womens, and Childrens) and two service centers (Human Resources and Custodial). The $35,000 costs incurred in Human
Favorite Department Store has three sales departments (Mens, Womens, and Childrens) and two service centers (Human Resources and Custodial). The $35,000 costs incurred in Human Resources are to be allocated based on the number of employees. The $18,000 costs incurred in Custodial are to be allocated based on square feet. The number of employees for Human Resources, Custodial, Mens, Womens, and Childrens parts of the business are 4, 2, 2, 5, and 3 people respectively. The square footage for Human Resources, Custodial, Mens Womens, and Childrens parts of the business are 800, 500, 3000, 6750, and 5250 respectively. Using the Direct method of service center allocation, the amount of Custodial costs to be allocated to the Womens Department would be _____.
Group of answer choices
A) $7,454
B) $8,100
C) $9,250
D) $7,839
E) $7,690
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