The Dollar Store Has a Human Resources Department and a Janitorial

question 42

Multiple Choice

The Dollar 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: $\begin{array}{c}\begin{array}{lll}\\\\ \text {Budgeted cost}\\ \text {Space in square feet}\\ \text {Number of employees}\end{array}\begin{array}{c}\text { Human } \\\underline{\text { Resources }} \\ \$ 45,000 \\4,000 \\5\end{array}\begin{array}{r}\\\underline{\text { Janitorial }} \\\$ 30,000 \\1,000 \\10\end{array}\begin{array}{c}\\\underline{\text {Sales \#1}}\\\\20,000 \\15\end{array}\begin{array}{c}\\\underline{\text {Sales \#2}}\\\\30,000 \\45 \end{array}\begin{array}{c}\\\underline{\text {Sales \#1}}\\\\50,000 \\30\end{array}\end{array}$

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:

Labor Relations

Field that emphasizes skills that managers and union leaders can use to minimize costly forms of conflict (such as strikes) and seek win-win solutions to disagreements.

U.S. Organizations

Entities or groups that are established and operate within the United States, following specific legal and cultural norms of the country.

Workforce

The group of people who are employed by a particular company, industry, or economy at large.

United States

A country in North America, consisting of 50 states, a federal district, and five major self-governing territories.