The total amount of Information Technology Department cost allocated to the two operating departments is closest to:
A)$28,679
B)$32,334
C)$23,391
D)$126,849

Question

Quizplus · Accepted Answer

To allocate the IT department cost to the two operating departments, we need to use the allocation percentages provided. 
For Department A: (14% x $152,000) + (20% x $98,000) = $21,280 + $19,600 = $40,880 
For Department B: (31% x $152,000) + (35% x $98,000) = $47,120 + $34,300 = $81,420 
Therefore, the total amount of IT department cost allocated to the two operating departments is: 
$40,880 + $81,420 = $122,300 
The closest option is B) $32,334.

The Total Amount of Information Technology Department Cost Allocated to the Two