Trick's Costumes has 65 employees,who are distributed as follows: $$\begin{array} { | l | c | }
\hline \text { Design } & 12 \text { employees } \
\hline \text { Fabrication } & 30 \text { employees } \
\hline \text { Purchasing } & 8 \text { employees } \
\hline \text { Administration } & 10 \text { employees } \
\hline \text { Sales } & 5 \text { employees } \
\hline
\end{array}$$ The payroll-related costs for the year are $1,043,050.If Trick's Costumes does use departmental classification,how much is allocated to the Purchasing department? (Do not round intermediate calculations.Round final answer to 2 decimal places.)

Question

Trick's Costumes has 65 employees,who are distributed as follows: $$\begin{array} { | l | c | } 
\hline \text { Design } & 12 \text { employees } \
\hline \text { Fabrication } & 30 \text { employees } \
\hline \text { Purchasing } & 8 \text { employees } \
\hline \text { Administration } & 10 \text { employees } \
\hline \text { Sales } & 5 \text { employees } \
\hline
\end{array}$$ The payroll-related costs for the year are $1,043,050.If Trick's Costumes does use departmental classification,how much is allocated to the Purchasing department? (Do not round intermediate calculations.Round final answer to 2 decimal places.)

Quizplus · Accepted Answer

To find the cost allocated to the Purchasing department, we need to find the proportion of employees in the Purchasing department relative to the total number of employees:

$8/65 = 0.123$

This means that the Purchasing department represents 12.3% of the total workforce.

Next, we need to use this proportion to allocate the total payroll cost:

$0.123 	imes 1,043,050 = 128,375.38$

Therefore, the answer is (A) $128,375.38.

Trick's Costumes Has 65 Employees,who Are Distributed as Follows The Payroll-Related Costs for the Year Are $1,043,050