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A public elementary school has two reading programs. Program A has 34 students and Program B has 78 students. The programs incur an indirect cost of $ 7,651 this year, and this cost needs to be allocated into both programs. Use the number of students as the cost base, what is the indirect cost that should be allocated to Program A this year? O $5,328.18 O $3,222.13 O $2,322.63 $2,190.53

1 Answer

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Answer:

the correct answer is O $2,322.63.

Explanation:

Let's calculate it step by step:

Total number of students: 34 (Program A) + 78 (Program B) = 112

Proportion of Program A students: 34 / 112 = 0.30357142857

Indirect cost allocated to Program A: Proportion of Program A students * Total indirect cost

Indirect cost allocated to Program A = 0.30357142857 * $7,651

Indirect cost allocated to Program A ≈ $2,322.63

Therefore, the indirect cost that should be allocated to Program A this year is approximately $2,322.63. So the correct answer is O $2,322.63.

User Sanket Vetkoli
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