Reference no: EM132461241

Dwight Hardware and Lumber will allocate the Personnel and Payroll Department's costs to the sales departments of Machines, Automotive, and Furniture. Personnel and Payroll also provide services to each other. Personnel costs are allocated by number of employees, and payroll costs are allocated by gross payroll dollars. Costs and other information for January were as follows:

                                Personnel              Payroll                 Machines                Automotive                           Furntiure

current costs               13,800                  6,400                      24,400                  40,000                                 31,500

gros payroll                  3,000                    1,500                       5,600                    8,700                                   4,050

# of employees             5                             3                           8                       15                                               4

Required

Problem a. complete schedule, which includes the total cost of operating the sales departments for January. Allocate service costs using the step-down method with the sequence of allocation based on highest percentage support concept.