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Lots Store has a Janitorial Department and a Personnel Department that provide services to three Sales Departments. The Janitorial Department cost is allocated based on

Lots Store has a Janitorial Department and a Personnel Department that provide services to three Sales Departments. The Janitorial Department cost is allocated based on space and the Personnel Department cost is allocated based on employees. The following information is available. Budget Space (sq m) Personnel Dept $45,000 4,000 5 Janitorial Dept $30,000 1,000 10 Sales #1 20,000 15 No. of Employees Using the step-down method, calculate the amount of Janitorial Department cost allocated to Sales Department #2, if the Personnel Department is allocated first. Sales #2 Sales#3 30,000 45 50,000 30

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