A company assigns the cost of the company\'s HR to production departments using

Question

A company assigns the cost of the company's HR to production departments using the direct method based on the number of employees in each department. The four production departments have the following number of employees: polishing, 30; engraving, 35; combining, 25; and shipping, 15. The HR department costs total $120,750. There are 5 employees in the HR department. When the HR costs are allocated, what is the total amount that will be allocated to the combining department?

A) $10,063

B) $28,750

$30,188

D) $36,225

A) $10,063

B) $28,750

$30,188

D) $36,225

Explanation / Answer

Cost to be allocated = 120750

Totl number of employees in production department = 30+35+25+15 i.e 105 employees

Cost to be allocated to combining department = Total Cost to be allocated / Totasl Number of employees* Number of employees in combining department

= 120750/105*25 i.e 28750

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

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