The Lots More 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.

	Personnel	Janitorial	Sales	Sales	Sales
	Dept	Dept	#1	#2	#3
Budget	$45 000	$30 000
Space (sq m)	4 000	1 000	20 000	30 000	50 000
No. of Employees	5	10	15	45	30

Using the step-down method, calculate the amount of Janitorial Department cost allocated to Sales Department #2, if the Personnel Department is allocated first.

Select one:

a. $10 247

b. $9 857

c. $8 571

d. $10 350

What is the charge out rate for repair shop worker if direct labour is $ 40 per hour and overhead is 120 percent of direct labour assuming there is a zero profit margin?

Select one:

a. $ 90

b. $80

c. $48

d. $88