Answer the following questions using the information below:
Luzent Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways.
$\begin{array}{lrr}& \text { Small Department}& \text { Large Department}\
\text { Square footage } & 6,750 & 17,250 \
\text { Number of employees } & 1,120 & 480 \
\text { Sales } & \$ 350,000 & \$ 1,750,000
\end{array}$
-If total payroll processing costs of $64,000 are allocated on the basis of number of employees,the amount allocated to the Small Department would be ________.
A) $44,800
B) $48,400
C) $46,200
D) $45,600

Question

Answer the following questions using the information below:
Luzent Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways.
 $\begin{array}{lrr}& \text { Small Department}& \text {  Large Department}\
\text { Square footage } & 6,750 & 17,250 \
\text { Number of employees } & 1,120 & 480 \
\text { Sales } & \$ 350,000 & \$ 1,750,000
\end{array}$
-If total payroll processing costs of $64,000 are allocated on the basis of number of employees,the amount allocated to the Small Department would be ________.
A) $44,800
B) $48,400
C) $46,200
D) $45,600

Quizplus · Accepted Answer

Payroll processing costs are allocated on the basis of number of employees. The Small Department has 1,120 employees and the Large Department has 480 employees. So, the amount allocated to the Small Department would be $64,000 * 1,120 / (1,120 + 480) = $44,800.

Answer the Following Questions Using the Information Below: Luzent Corporation

Answer the Following Questions Using the Information Below:
Luzent Corporation