Solved

Answer the Following Questions Using the Information Below:
at the Verill

Question 42

Multiple Choice

Answer the following questions using the information below:
At the Verill Company, the cost of the library and information center has always been charged to the various departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of engineers within a department might be a better predictor of library and information center costs.
 Total library and information center costs are $200,000 Department  A  B  C  Number of employees 135530135 Number of engineers 08020\begin{array}{l}\text { Total library and information center costs are } \$ 200,000 \text {. }\\\begin{array} { l r r r } \text { Department } & \text { A } & \text { B } & \text { C } \\\text { Number of employees } & 135 & 530 & 135 \\\text { Number of engineers } & 0 & 80 & 20\end{array}\end{array}
-If the number of engineers is considered the cost driver,what amount of library and information center costs will be allocated to Department A?


A) $30,000
B) $33,750
C) $0
D) $66,667

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents