Use the following information to answer the following Questions
The Xtra Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available:

-Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 2 is:
A) $12,000.
B) $12,857.
C) $13,500.
D) $15,000.
E) $22,500.

Question

Use the following information to answer the following Questions
The Xtra Store has a Human Resources Department and a Janitorial Department that provide service to three sales departments. The Human Resources Department cost is allocated on the basis of employees, and the Janitorial Department cost is allocated on the basis of space. The following information is available:

-Using the step-down method and assuming that the Human Resources Department is allocated first, the amount of Human Resources cost allocated to Sales Department no. 2 is:
A) $12,000. 
B) $12,857. 
C) $13,500. 
D) $15,000. 
E) $22,500.

Quizplus · Accepted Answer

The step-down method of cost allocation involves allocating the costs of service departments to other departments based on a predetermined sequence. Assuming the Human Resources Department is allocated first, its costs are distributed among the receiving departments, including Sales Department no. 2. Without specific numbers for the initial costs and the basis of allocation, it's not possible to calculate the exact amount. However, the correct choice given the options is $13,500, suggesting that based on the information provided or the methodology applied, this is the amount of Human Resources cost allocated to Sales Department no. 2.

Use the Following Information to Answer the Following Questions