Jessica Porter works in both the jewelry department and the hosiery department o

Question

Jessica Porter works in both the jewelry department and the hosiery department of a retail store. Porter assists customers in both departments and arranges and stocks merchandise in both departments. The store allocates Porter’s $25,500 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 Porter kept in a randomly chosen two-week period. The diary showed the following hours and activities spent in the two departments. Selling in jewelry department 51.0 hours Arranging and stocking merchandise in jewelry department 8.0 hours Selling in hosiery department 14.0 hours Arranging and stocking merchandise in hosiery department 9.0 hours Idle time spent waiting for a customer to enter one of the selling departments 6.0 hours Allocate Porter’s annual wages between the two departments. HintsReferenceseBook & Resources Expanded tableDifficulty: 3 HardLearning Objective: 09-P2 Allocate indirect expenses to departments. Check my work

Explanation / Answer

Jewellery Hosiery Total Direct hours: Selling            51.00          14.00            65.00 Arranging & Stocking              8.00            9.00            17.00            59.00          23.00            82.00 Idel time              4.32            1.68              6.00 (Apportioned in the ratio of Direct hours)            63.32          24.68            88.00 Wage allocation          18,348          7,152          25,500 (based on total hours)

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.