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CoursHeroTranscribedText: LO. (Step mellody Leyll Mallagellfelt CO. Classifies Its operations into s departments. commercial sales,...

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Accounting

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CoursHeroTranscribedText: LO. (Step mellody Leyll Mallagellfelt CO. Classifies Its operations into s departments. commercial sales, residential sales, & property management. The owner, Ellen Leyh, wants to know the full cost of operating each department. Direct departmental costs & several allocation bases associated with each follow: AVAILABLE ALLOCATION BASES Number of Employees/ Direct Costs Salespersons Assets Employed Revenue Administration $ 1,500,000 20 $2,480,000 n/a Accounting 990,000 15 1,364,000 n/a Promotion 720,000 12 720,000 n/a Commercial sales 10,490,000 45 900,000 $10,000,000 Residential sales 9,179,000 210 1,440,000 18,000,000 Property management 398,400 18 540,000 2,000,000 The support departments are shown in a benefits-provided ranking. Leyh has selected the following allocation bases for each dept: # of employees/salespersons for administration, dollars of assets employed for accounting, & dollars of revenue for promotion. a. Use the step method to allocate the support department costs to the revenue-generating departments

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