High Traffic Products Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways.

If total payroll processing costs of $64,680 are allocated on the basis of number of employees, the amount allocated to the Large Department would be ________. (Do not round interim calculations. Round the final answer to the nearest whole dollar.)
A) $32,026
B) $21,420
C) $32,340
D) $43,260

Question

High Traffic Products Corporation has two departments, Small and Large. Central costs could be allocated to the two departments in various ways.

If total payroll processing costs of $64,680 are allocated on the basis of number of employees, the amount allocated to the Large Department would be ________. (Do not round interim calculations. Round the final answer to the nearest whole dollar.)
A) $32,026 
B) $21,420 
C) $32,340 
D) $43,260

Quizplus · Accepted Answer

Amount allocated to the Large Department = $64,680 × (510 ÷ (1,030 + 510)) = $21,420

High Traffic Products Corporation Has Two Departments, Small and Large