Cool Surfboards has two departments that both use a conference room (shared facilities). Total monthly conference room cost is $1,000. The Wave Blaster department has 15 employees that reserved 60 hours of conference room time. The Boogie Break department has 5 employees that reserved 100 hours of conference room time. If Cool Surfboards allocates shared facilities cost based on hours of use, what is the amount of share facilities costs allocated to the Boogie Break department?

Question

Quizplus · Accepted Answer

The total hours of conference room use are 60 (Wave Blaster) + 100 (Boogie Break) = 160 hours. The Boogie Break department used 100 out of 160 hours, which is 100/160 = 62.5% of the total use. Therefore, they are allocated 62.5% of the $1,000 total cost, which is $625.

Cool Surfboards Has Two Departments That Both Use a Conference