City Inspections has three departments using the services of the Legal Department. Total monthly shared legal department cost is $18,000. The Annual inspections department has 5 employees that used 100 hours of legal services. The Emergency services department has 8 employees that used 200 hours of legal services. The Roads department has 7 employees that used 300 hours of legal services.
-If City Inspections allocates shared legal costs number of employees as the allocation base, how much of the legal costs will be allocated to the Roads department?

Question

City Inspections has three departments using the services of the Legal Department. Total monthly shared legal department cost is $18,000. The Annual inspections department has 5 employees that used 100 hours of legal services. The Emergency services department has 8 employees that used 200 hours of legal services. The Roads department has 7 employees that used 300 hours of legal services. 
-If City Inspections allocates shared legal costs number of employees as the allocation base, how much of the legal costs will be allocated to the Roads department?

Quizplus · Accepted Answer

The total number of employees across all departments is 5 (Annual inspections) + 8 (Emergency services) + 7 (Roads) = 20 employees. If the allocation is based on the number of employees, the Roads department, with 7 employees, represents 7/20 of the total. Therefore, the Roads department's share of the $18,000 legal costs is 7/20 * $18,000 = $6,300.

City Inspections Has Three Departments Using the Services of the Legal