Cool Surfboards has two departments using the services of the Payroll department. Total monthly payroll shared cost is $6,000. The departments allocate payroll costs based on number of employees. The Wave Blaster department has 15 employees and the Boogie Break department has 5 employees. What is the amount of payroll costs allocated to the Boogie Break department?

Question

Quizplus · Accepted Answer

The total number of employees is 20 (15 from Wave Blaster + 5 from Boogie Break). The Boogie Break department has 5 out of 20 employees, which is 1/4 of the total. Therefore, they are allocated 1/4 of the $6,000 total payroll cost, which is $1,500.

Cool Surfboards Has Two Departments Using the Services of the Payroll