Trick's Costumes has 65 employees, who are distributed as follows: The payroll-related costs for the year are $1,043,050. If Trick's Costumes does use departmental classification, how much is allocated to the Design department? (Do not round intermediate calculations. Round final answer to 2 decimal places.)

Question

Trick's Costumes has 65 employees, who are distributed as follows:  The payroll-related costs for the year are $1,043,050. If Trick's Costumes does use departmental classification, how much is allocated to the Design department? (Do not round intermediate calculations. Round final answer to 2 decimal places.)

Quizplus · Accepted Answer

To allocate the payroll-related costs to departments, we need to use the distribution of employees provided. 
The proportion of employees in the Design department is:
11/65 or 0.1692 (rounded to 4 decimal places)
So, the amount allocated to the Design department is:
0.1692 x $1,043,050 = $176,203.46
Rounded to 2 decimal places, the answer is B) $192,563.08.

Trick's Costumes Has 65 Employees, Who Are Distributed as Follows