Question

Question Help At the Wild Cat Group​ 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 $213,000. Department A B C Number of employees 145 540 140 Number of engineers 0 85 40 If the number of employees is considered the cost​ driver, what amount of library and information center costs will be allocated to

Answer 1

$37,436.36

Step-by-step explanation:

The computation of the amount of library and information center costs will be allocated to department A is shown below;

= Total library and information center costs × department A employees ÷ total number of employees

= $213,000 × 145 ÷ (145 + 540 + 140)

= $213,000 × 145 ÷ 825

= $37,436.36

hence, the amount would be $37,436.36