The Mega Store has a Maintenance Department and a Personnel Department that prov
ID: 2565123 • Letter: T
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 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.
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
Explanation / Answer
Sales #1 Personnel Department 14716.42 Maintenance Department 2828.28 Cost allocated to Sales Departments Sales#1 17544.70
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