H/R svc

Janitor svc

Sewing

Packaging

Employees

3

3

X

15

Square footage

2,000

100

20,000

10,000

Cost incurred

$125,000

$85,000

$1,000,000

$600,000

Using the direct method, allocate the service department costs to production. Please select a variable for employees in the sewing department between 6 and 13.The human resource costs are to be allocated based on employees, and the janitorial costs are to be allocated based on the square footage. Create cost allocation analysis (20 points). You may use electronic spreadsheets for calculation purposes, but please upload a pdf of your handwritten work.