Question
The Mega Store has a Maintenance Department and a Personnel Department that provide services to three Sales Departments. The Maintenance Department cost is allocated based
The Mega Store has a Maintenance Department and a Personnel Department that provide services to three Sales Departments. The Maintenance Department cost is allocated based on electricity usage in Kwh and the Personnel Department cost is allocated based on employees. The following information is available.
| Personnel Department | Maintenance Department | Sales #1 | Sales #2 | Sales #3 |
Budget | $58,000 | $20,000 |
|
|
|
Electricity (Kwh) | 39,000 | 40,000 | 14,000 | 36,000 | 49,000 |
No. of Employees | 28 | 22 | 17 | 20 | 30 |
Using the direct method, calculate the amount of Support Departments (Personnel and Maintenance) cost allocated to Sales Departments Sales#1.
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