Reference no: EM131600165

Question - Jessica Porter works in both the jewelry department and the hosiery department of a retail store. Porter assists customers in both departments and arranges and stocks merchandise in both departments. The store allocates Porter's $27,100 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 Porter 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 - 47.0 hours

Arranging and stocking merchandise in jewelry department - 9.0 hours

Selling in hosiery department - 15.0 hours

Arranging and stocking merchandise in hosiery department - 10.0 hours

Idle time spent waiting for a customer to enter one of the selling departments - 7.0 hours

Allocate Porter's annual wages between the two departments.