The Xtra Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available: Human ResourcesJanitorialSales #1Sales #2Sales #3Budgeted cost$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 direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2 is:

A. $8,654.
B. $10,350.
C. $9,000.
D. $8,571.
E. $14,210.


Answer: C

Business

You might also like to view...

OPEC can be considered as a "cartel" which is a group of separate companies that collectively:

A) sets prices, controls output, or takes other actions to maximize profits. B) dictates how other countries should use their products. C) produces more products in order to beat the competition. D) conducts activities that are considered illegal in the United States. E) works on forming a union against management of other companies.

Business

The primary responsibility for the preparation and integrity of the financial statements in an annual report belongs to the company's independent accountants (CPAs)

a. True b. False Indicate whether the statement is true or false

Business

The beginning of the wheel of retailing (when low-price institutions first appear) corresponds to which retail life cycle stage?

a. decline b. accelerated development c. introduction d. maturity

Business

A function of a business plan is to

A. improve the balance sheet and enhance net worth. B. create a long-term relationship with an investment banking firm. C. raise capital through federally registered shares of the company. D. improve credibility with customers and other stakeholders. E. determine the viability of one's enterprise.

Business