Total time spent in each department is computed as below:
Jewelry Department = Selling time + Arranging and stocking time
= 51 hours + 6 hours
= 57 hours
Hosiery Department = selling time + Arranging and atocking time
= 12 hours + 7
= 19 hours
Department | Time spent | % of the total | Allocated cost |
Jewelry | 57 hours | 75% | 22500 |
Hosiery | 19 hours | 25% | 7500 |
Total | 76 hours | 100% | 30,000 |
Working Notes:
Jewelry = 57/76*100 = 75%
Hosiery = 19/76*100 =25%
Total cost to be allocated is $30,000
Jewelry =30000*75% = 22500
hosiery = 30000*25% = 7500
Check my w Jessica Porter works in both the jewelry department and the cosmetics department of a retail store. Porte...
Jessica Porter works in both the jewelry department and the cosmetics department of a retail store. Porter assists customers in both departments and arranges and stocks merchandise in both departments. The store allocates Porter's $15,100 annual wages between the two departments based on the time worked in the two departments. Jessica reported the following hours and activities spent in the two departments. Selling in jewelry department Arranging and stocking merchandise in jewelry department Selling in cosmetics department Arranging and stocking...
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value: 10.00 points Monica Gell orks in both the jewelry department and the hosiery department of store. Gella sists customers in both departments and arranges and stocks mercham both depa ents. The store allocates Gellar's $30,000 annual wages between t departme based on a sample of the time worked in the two departments. The sa obtained m a diary of hours worked that Gellar kept in a randomly chosen tw period. diary showed the following hours and activities spent in...
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Jessica owns a small department store in a metropolitan area. For twenty years, the accountant has applied overhead to the various departments—Women’s Apparel, Men’s Apparel, Cosmetics, Housewares, Shoes, and Electronics—based on the basis of employee hours worked. Jessica’s daughter, who is an accounting student at a local university, has suggested her mother should consider using activity-based costing (ABC). In an attempt to implement ABC, Jessica and her daughter have identified the following activities. (9 pts) Instructions Determine a cost driver...