Jaria Stevens works in both the jewelry department and the hosiery department of

Question

Jaria Stevens works in both the jewelry department and the hosiery department of a retail store. Stevensassists customers in both departments and arranges and stocks merchandise in both departments. Thestore allocates Stevens' $35,000 annual wages between the two departments based on a sample of the
time worked in the two departments. The sample is obtained from a diary of hours worked that Stevenskept in a randomly chosen two-week period. The diary showed the following hours and activities spENT in the two departments. Allocate Stevens' annual wages between the two departments.

Selling in jewelry department . 41 hours
Arranging and stocking merchandise in jewelry department . 4 hours

Selling in hosiery department . 24 hours
Arranging and stocking merchandise in hosiery department . 6 hours
Idle time spent waiting for a customer to enter one of the selling departments . 5 hours

Please also attach explanation

Explanation / Answer

Jaria Steven works in both the jewellry department and hosiery department. The stores allocated Stevens $35,000 annual wages between the two departments based on a sample of the time worked. The following hours and activities spent in the two departments.                                                                 Jewellery Department           Hosiery Department selling in jewellery department                         .41 hours                              .24 hours Arranging and stocking merchandise                .4 hours                               .6 hours Idle time spebt waiting for a customer                                                          .5 hours                                                                                                                                                        ______________                              ______________ Total hours spent in jewellery department      0.81hours                               1.34hours                                                                 ______________                     __________________ Allocation of Steven's annual wages: Jewellery Department = $35,000* 0.81/2.15 = $13,186.05 Hosiery Department   = $35,000 * 1.43/2.15 = $21,813.95                                                                        _____________ Total annual wages                                         = $35,000.00                                                                        _____________ Note: 0.81 hours + 1.34 hours = 2.15 hours

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