In the first step of the allocation, the amount of Personnel Department cost allocated to the Family Law Department is closest to:
A)$36,543
B)$32,702
C)$66,819
D)$33,925

Question

Quizplus · Accepted Answer

The Personnel Department cost is allocated based on the number of employees in each department.

Personnel Department cost per employee = $509,599 ÷ 25 = $20,384

Number of employees in the Family Law Department = 7

Personnel Department cost allocated to Family Law Department = $20,384 × 7 = $142,688

However, the Family Law Department also incurs its own personnel costs of $108,763. Thus, the net allocation of Personnel Department cost to the Family Law Department is:
$142,688 - $108,763 = $33,925

Therefore, the correct answer is D.

In the First Step of the Allocation, the Amount of Personnel