Question
The Belk Store has a Human Resources Department and a Janitorial Department that provide services to three production departments. The Human Resources Department cost is
The Belk Store has a Human Resources Department and a Janitorial Department that provide services to three production departments. The Human Resources Department cost is allocated on the basis of number of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available:
| Human Resources | Janitorial | Prod. #1 | Prod. #2 | Prod. #3 |
Total cost before allocation | $45,000 | $30,000 |
|
|
|
Space in square feet | 4,000 | 1,000 | 20,000 | 30,000 | 50,000 |
Number of employees | 5 | 10 | 15 | 45 | 30 |
Using the step-down method, the amount of Human Resources cost allocated to Prod. Department no. 3 & the amount of Janitorial cost allocated to Prod. Department no. 2, respectively are:
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