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Monica Gellar works in both the jewelry department and the hosiery department of a retail store. Gellar assists customers in both departments and arranges and stocks merchandise in both departments. The store allocates Gellar’s $30,000 annual wages between the two departments based on a sample of the time worked in the two departments. The sample is obtained from a diary of hours worked that Gellar kept in a randomly chosen two week period. The diary showed the following hours and activities spent in the two departments. |
| Selling in jewelry department | 64 hours |
| Arranging and stocking merchandise in jewelry department | 6 hours |
| Selling in hosiery department | 14 hours |
| Arranging and stocking merchandise in hosiery department | 12 hours |
| Idle time spent waiting for a customer to enter one of the selling departments | 4 hours |
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Allocate Gellar’s annual wages between the two departments. (Round your percentage answers to 1 decimal place. Omit the “$” & “%” signs in your response.) |
| Hours Worked | % of Total | Cost | |
| Jewelry Dept. | % | $ | |
| Hosiery Dept. | |||
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| Totals | % | $ | |
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