The total Corporate Law Department cost after allocations is closest to:
A)$413,367
B)$368,946
C)$422,931
D)$423,304

Question

Quizplus · Accepted Answer

We need to add up the direct costs of the Corporate Law Department and the allocated costs from IT and HR. 
Direct cost of Corporate Law Department = $350,000 
Allocated cost from IT = 10% of $50,000 = $5,000 
Allocated cost from HR = 25% of $98,532 = $24,633 
Total cost = $350,000 + $5,000 + $24,633 = $379,633 
However, we also need to add the allocated cost of the Corporate Law Department to other departments. 
Allocated cost to other departments = 10% of $350,000 = $35,000 
Total cost = $379,633 + $35,000 = $414,633 
The closest option is C) $422,931.

The Total Corporate Law Department Cost After Allocations Is Closest