Answered: Using the direct method, the amount of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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:

Options:

a. P8,571

b. P15,000

c. P9,000.

d. P10,350

e. none of the above

Human Resources Janitorial Sales #1 Sales #2 Sales #3
Budgeted cost
P45,000
P30,000
Space in square feet
4,000
1,000
50,000
20,000 30,000
45
Number of employees 5
10
15
30
Using the direct method, the amount of Janitorial Department cost allocated to Sales Department no. 2
is:

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