Jessica Porter works in both the jewelry department and the cosmetics department of a retail store. She assists customers in both departments and arranges and stocks merchandise in both departments. The store allocates her $11,900 annual wages between the two departments based on the time worked in the two departments in each two-week pay period. On average, Jessica reports the following hours and activities spent in the two departments.


Selling in jewelry department 51.0 hours
Arranging and stocking merchandise in jewelry department 6.0 hours
Selling in hosiery department 12.0 hours
Arranging and stocking merchandise in hosiery department 7.0 hours
Idle time spent waiting for a customer to enter one of the selling departments 4.0 hours

Required:
Allocate Porter's annual wages between the two departments.

Respuesta :

Answer:

Jessica Porter

Jewelry = $8,776.25

Cosmetics = $3,123.75

Explanation:

a) Data and Calculations:

Hours spent in each department:

                                  Jewelry dept.       Cosmetics dept.

Selling                               51                            12

Arranging and stocking    6                             7

Idle time                             2                            2

Total hours                      59                          21

Allocation of annual wages of $11,900

Jewelry = 59/80 * $11,900 =    $8,776.25

Cosmetics = 21/80 * $11,900 = $3,123.75

Total annual wages                 $11,900.00