Broadway Department Store Allocates the Personnel and Payroll Department Costs

question 142

Essay

Broadway Department Store allocates the personnel and payroll department costs to the sales departments of Shoes, Automotive, and Clothing. Human resources (personnel) and payroll also provide services to each other. Personnel costs are allocated by number of employees and payroll costs are allocated by gross payroll. Costs and other information for January were as follows:
Required:
Prepare a schedule, which includes the total cost of operating the sales departments for January. Allocate service costs using the step-down method with the sequence of allocation based on highest percentage support concept.

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Definitions:

Craftsmen

Skilled workers who create products using their hands, often employing traditional techniques in various trades such as carpentry, metalwork, or weaving.

Shopkeepers

Individuals who own or operate retail businesses, selling goods to the public in shops or similar establishments.

Catholic Church

A major worldwide Christian church led by the Pope, based in Vatican City.

Irish-Catholic Immigrants

Immigrants from Ireland, often Catholic, who moved to other countries for better opportunities or to escape hardships.