College
Jane Cooper's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. Copper's allocates Personnel Department costs on the basis of gross payroll. Cost and allocation information for June is as follows: Personnel Payroll Housewares Clothing FurnitureDirect department cost $15,600 $6,400 $24,400 $40,000 $33,500Number of employees 15 12 24 32 12Gross payroll $12,000 $6,600 $21,200 $26,100 $16,200A) Determine the percentage of total Personnel Department services that was provided to the Payroll DepartmentB) Determine the percentage of total Payroll Department services that was provided to the Personnel Department.C) Prepare a schedule showing Personnel Department and Payroll Department cost allocations to the operating departments, assuming Cooper's uses the step method.