A department store apportions payroll costs on the basis of the number of payrol

Question

A department store apportions payroll costs on the basis of the number of payroll checks issued. Accounting costs are apportioned on the basis of the number of reports. The payroll costs for the year were $231,000 and the accounting costs for the year totaled $75,500. The departments and the average cost of store equipment and average cost of inventory for each are as follows:

................Number of............. Number of
................Payroll Checks........... Reports

Dept R......... 483...................... 70
Dept S ........1,470.................... 85
Dept T......... 147..................... 345

Determine the amount of (a) payroll cost and (b) accounting cost to be apportioned to each department.

Explanation / Answer

the number of payroll checks in all department is 2100 the amount paid is 231000 which gives you 110 in payroll checks then you would take the number of reports and add them all together which would give you 500 and divide it into the the numbers of report which will give you 151

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.