Use the Following Information to Answer the Following Questions

question 1

Multiple Choice

Use the following information to answer the following Questions
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:

-Using the step-down method and assuming the Human Resources Department is allocated first, the amount of Janitorial cost allocated to Sales Department no. 2 is:

• A) $8,571.
• B) $9,000.
• C) $9,857.
• D) $10,247.
• E) $10,350.

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Definitions:

Subrogation

A legal principle allowing an entity, such as an insurance company, to step into the shoes of another party to pursue recovery from the party responsible for a loss or damage.

Indemnity

A contractual obligation of one party to compensate the loss occurred to the other party due to the acts of the indemnitor or any other party.

Insurance Contracts

Legal agreements between an insurer and the insured, in which the insurer agrees to compensate the insured for loss of property, life, or health, under specified conditions.

Wagering

The act of betting or gambling money on an outcome that is largely subject to chance.