Check myw Jessica Porter works in both the jewelry departmen

Check myw 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 $29,800 annual wages betweer 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 merchandise in cosmetics department Idle time spent vaiting for a customer to enter one of the departments 44.0 hours 10.0 hours 16.0 hours 11.0 hoars 8.0 hours Allocate Jessica\'s annual wages between the two departments. Wages Allocation Department Hours worked Numerator | Denominator | %of Hours Jewelry Cosmetics Totals

Solution

Explanation: Computation of hours worked in the two selling departments.

Jewelry department Selling = 44.0

Arranging and stocking = 10.0

Total hours = 54.0 hours

Cosmetics department Selling= 16.0

Arranging and stocking = 11.0

Total = 27.0 hours

Total hours = 81.0 hours

Note: This analysis ignores idle time because neither department receives any direct benefit from it. Accordingly, the total wages are allocated between the departments in proportion to the time worked in each.

Department	Hours worked	Percent of hours worked	Wages	Allocation
		Numerator	Denominator	% of Hours
Jewelty	54	54	81	66.67	29800	19867.66
Cosmetics	27	27	81	33.33	29800	9932.34
Totals	81					29800