Personnel Payroll Housewares Clothing Furniture Direct department cost Number of

Question

Personnel Payroll Housewares Clothing Furniture Direct department cost Number of employees Gross payroll $7,300 $3,400 $11,800 $20,000 $15,650 4 15 $6,200 $2,800 11,300 $17,600 $7,700 (a) Determine the percentage of total Personnel Department services that was provided to the Payroll Department. (Round your answer to one decimal place.) 6.9 (b) Determine the percentage of total Payroll Department services that was provided to the Personnel Department. (Round your answer to one decimal place.) 14.5 (c) Prepare a schedule showing Personnel Department and Payroll Department cost allocations to the operating departments, assuming O'Brian's uses the step method Do not round until your final answers. Round answers to the nearest dollar. Service Departments Producing Departments Payroll Personnel Clothing Furniture Housewares Total costs $

Explanation / Answer

Answer:

Particulars Personnel Payroll Housewares Clothing Furniture Direct department cost 7300 3400 11800 20000 15650 Less: Personnel cost -7300 503 1762 3776 1259 0 3903 13562 23776 16909 Payroll -3903 1205 1205 1205 Total cost 14767 24981 18114

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