The Lots More Store has a Janitorial Department and a Personnel Department that provide services to three Sales Departments. The Janitorial Department cost is allocated based on space and the Personnel Department cost is allocated because of employees. The following information is available.
Using the step-down method, calculate the amount of Personnel Department cost allocated to Sales Department #3, if the Personnel Department is allocated first.
A) $13 500
B) $12 857
C) $12 000
D) $15 000

Question

The Lots More Store has a Janitorial Department and a Personnel Department that provide services to three Sales Departments. The Janitorial Department cost is allocated based on space and the Personnel Department cost is allocated because of employees. The following information is available. 
Using the step-down method, calculate the amount of Personnel Department cost allocated to Sales Department #3, if the Personnel Department is allocated first.
A) $13 500 
B) $12 857 
C) $12 000 
D) $15 000

Quizplus · Accepted Answer

The Answer of The Lots More Store has a Janitorial Department and a Personnel Department that provide services to three Sales Departments. The Janitorial Department cost is allocated based on space and the Personnel Department cost is allocated because of employees. The following information is available. 
Using the step-down method, calculate the amount of Personnel Department cost allocated to Sales Department #3, if the Personnel Department is allocated first.
A) $13 500 
B) $12 857 
C) $12 000 
D) $15 000

The Lots More Store Has a Janitorial Department and a Personnel