An overhead expense of $ 535,000 is allocated to three departments A, B and C as 1.5 : 2.0 : 3.5. respectively. How much would be allocated to department B?
A) $ 152,857
B) $ 161,997
C) $ 166,558
D) $ 178,333

Question

Quizplus · Accepted Answer

The total ratio is 1.5 + 2.0 + 3.5 = 7.0. Department B's share is 2.0/7.0 of the total expense. So, $535,000 * (2.0/7.0) = $152,857.14, which rounds to $152,857.

An Overhead Expense of $ 535,000 Is Allocated to Three