4,000 5 1,000 10 20,000 15

Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter18: Activity-Based Costing
Section: Chapter Questions
Problem 18.3TIF: Communication The controller of New Wave Sounds Inc. prepared the following product profitability...
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The Helium 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 Resources Janitorial Sales #1 Sales #2 Sales #3
Budgeted cost
P45,000
P30,000
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:
Transcribed Image Text:Human Resources Janitorial Sales #1 Sales #2 Sales #3 Budgeted cost P45,000 P30,000 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:
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