The total payroll cost and accounting cost can be calculated for each department as follows:
The Total Payroll Cost
Payroll Cost = (Payroll Checks / Total Payroll Checks) * Total Payroll Cost
Accounting Cost = (Reports Generated / Total Reports Generated) * Total Accounting Cost
The total cost for each department can be calculated by adding the payroll cost and accounting cost for that department.
The table above shows the calculated payroll cost, accounting cost, and total cost for each department.
The Complete Question
A department store apportions payroll costs to the various departments on the basis of the number of payroll checks issued by each department. Accounting costs are apportioned on the basis of the number of reports generated for each department.
The payroll costs for the year were $150,000, and the accounting costs for the year totaled $70,000. The number of payroll checks issued and the number of reports generated for each department are as follows:
Department Payroll Checks Reports Generated Payroll Cost ($) \$ Accounting Cost () Total Cost ($)
A 120 100 20000.00 10000.00 30000.00
B 150 120 25000.00 12000.00 37000.00
C 180 140 30000.00 14000.00 44000.00
D 210 160 35000.00 16000.00 51000.00
E 240 180 40000.00 18000.00 58000.00