Tutors-R-Us provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 2010, the firm's information system produced the following data: Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Tutors-R-Us operations for November 2010 included:
If the number of tutors in each area is the cost driver for custodial services, the total custodial services cost allocated to history would be:
A) $450
B) $270
C) $257
D) None of the above

Question

Tutors-R-Us provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 2010, the firm's information system produced the following data: Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Tutors-R-Us operations for November 2010 included:
 If the number of tutors in each area is the cost driver for custodial services, the total custodial services cost allocated to history would be:
A) $450 
B) $270 
C) $257 
D) None of the above

Quizplus · Accepted Answer

Since the number of tutors in each area is the cost driver for custodial services, we need to allocate the total custodial services cost among the four subject areas based on the number of tutors in each area.

From the table, we can see that there were 7 tutors in history, which is 7 out of the total of 27 tutors across all four areas.

Therefore, the total custodial services cost allocated to history would be:
$935 x (7/27) = $257 (rounded to the nearest dollar)
So, the correct answer is C.

Tutors-R-Us Provides Academic Enrichment and Review Activities for High School