Interdepartment Services: Step Method O'Brian's Department Stores allocates the costs of the Personnel and Payroll departments...

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Interdepartment Services: Step Method OBrians Department Stores allocates the costs of the Personnel and Payroll department

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(c)Schedule showing Personnel department and Payroll department cost allocations to the operating departments:(Step method)

					(Amount in $)
		Service department		Producing department
S.NO.	Particulars	Personnel	Payroll	Housewares	Clothing	Furniture
A	Direct department cost	6500	3300	11900	20000	16350
B	Number of employees	5	3	9	15	3
C	Gross payroll	6400	3400	11400	17800	8000
D	Allocation of personnel department costs on the basis of number employees	0	650	1950	3250	650
			(6500*3/30)	(6500*9/30)	(6500*15/30)	(6500*3/30)
E	Total costs before allocation of payroll expenses		3950	13850	23250	17000
F	Allocation of Payroll department costs on the basis of Gross payroll	0	0	1210.483871	1890.053763	849.4623656
				(3950*11400/37200)	(3950*17800/37200)	(3950*8000/37200)
	Total costs(E+F)	0	0	15060.48	25140.05	17849.46

Total costs after allocation

				(Amount in $)
	Service department		Producing department
	Personnel	Payroll	Housewares	Clothing	Furniture
Total costs	0	0	15060.48	25140.05	17849.46

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