Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:

-If total payroll processing costs are $64,000 and they are allocated on the basis of number of employees, the amount allocated to the New Department should be
A) $44,800.
B) $16,000.
C) $10,667.
D) $19,200.

Question

Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:
 
-If total payroll processing costs are $64,000 and they are allocated on the basis of number of employees, the amount allocated to the New Department should be
A) $44,800. 
B) $16,000. 
C) $10,667. 
D) $19,200.

Quizplus · Accepted Answer

The Answer of Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:
 
-If total payroll processing costs are $64,000 and they are allocated on the basis of number of employees, the amount allocated to the New Department should be
A) $44,800. 
B) $16,000. 
C) $10,667. 
D) $19,200.

Stohr Company Has Two Departments, New and Old