High Traffic Products Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways.

If total payroll processing costs of $34,560 are allocated on the basis of number of employees, the amount allocated to the Small Department would be ________. (Do not round interim calculations. Round the final answer to the nearest whole dollar.)
A) $24,960
B) $28,560
C) $17,280
D) $9,600

Question

High Traffic Products Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways.

If total payroll processing costs of $34,560 are allocated on the basis of number of employees, the amount allocated to the Small Department would be ________. (Do not round interim calculations. Round the final answer to the nearest whole dollar.)
A) $24,960 
B) $28,560 
C) $17,280 
D) $9,600

Quizplus · Accepted Answer

Amount allocated to the Small Department = $34,560 × (1,040 ÷ (1,040 + 400)) = $24,960

High Traffic Products Corporation Has Two Departments, Small and Large