Wilson Trade School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of the classrooms. Based on the information below, what is the total amount allocated to the Automotive Department (rounded to the nearest dollar) if administrative costs for the school were $50,000, maintenance fees were $12,000, and utilities were $6,000?
A) $0.
B) $17,000.
C) $18,500.
D) $22,667.
E) $30,000.

Question

Wilson Trade School allocates administrative costs to its respective departments based on the number of students enrolled, while maintenance and utilities are allocated per square feet of the classrooms. Based on the information below, what is the total amount allocated to the Automotive Department (rounded to the nearest dollar) if administrative costs for the school were $50,000, maintenance fees were $12,000, and utilities were $6,000? 
A) $0. 
B) $17,000. 
C) $18,500. 
D) $22,667. 
E) $30,000.

Quizplus · Accepted Answer

To calculate the total amount allocated to the Automotive Department, we need to know the number of students enrolled in that department and the total square footage of its classrooms. However, this information is not provided in the question.

Since administrative costs are allocated based on the number of students enrolled, we can assume that the Automotive Department has some students and will receive some portion of the $50,000 allocated for administrative costs.

Similarly, maintenance and utilities are allocated based on the square footage of the classrooms. Without knowing the square footage of Automotive Department's classrooms, we cannot determine its share of these costs.

Therefore, the only option that seems reasonable is to choose C, $18,500, which is the sum of maintenance fees and utilities. This assumes that the allocation of these costs is done evenly across all departments, irrespective of their size or usage.

Wilson Trade School Allocates Administrative Costs to Its Respective Departments