Cool Surfboards has two departments using the services of the Payroll department. Total monthly payroll shared cost is $6,000. The Wave Blaster department has 15 employees that make 20 requests of the payroll department a month. The Boogie Break department has 5 employees that make 20 requests of the payroll department a month. Which of the following is TRUE?

Question

Quizplus · Accepted Answer

Both statements A and B are correct. A) is true because if the number of employees is used as the basis for allocating payroll costs, Wave Blaster, with more employees (15 vs. 5), will receive a larger allocation. B) is true because if the number of requests is used as the basis, both departments make the same number of requests (20 each), leading to equal allocations of payroll costs.

Cool Surfboards Has Two Departments Using the Services of the Payroll