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Orpheus Ltd has a Human Resource Department, an Administration Department and three Sales Departments. The Human Resource Department cost is allocated based on the
Orpheus Ltd has a Human Resource Department, an Administration Department and three Sales Departments. The Human Resource Department cost is allocated based on the number of employees and the Administration Department cost is allocated based on direct labour hours. The support departments both serve each other and the three Sales Departments. The following information is available: Admin Sales #1 Sales #2 Sales #3 Budgeted cost Number of employees Direct labour hours HR 30,000 10 1,000 45,000 5 15 45 30 4,000 20,000 30,000 50,000 Use the step-down method to calculate the amount of Human Resource Department cost allocated to Sales #2. (Answer without point or comma separators, e.g., 1000 instead of 1,000)
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