The Human Resources Department for Vargis Corp Required:
If Vargis Uses a Dual-Rate for Allocating Its Costs

question 142

Essay

The Human Resources Department for Vargis Corp. provides personnel services for two departments in the Kansas City office. The following budget has been prepared for the month.
$$\begin{array}{l}\text { Budgeted: }\\\begin{array} { l c } \text { Production } & \text { 860 employees } \\\text { Management } & \text { 140employees } \\\text { Cost equation } & \$ 46,500 + \$ 20 \text { per employee }\end{array}\end{array}$$
Required:
If Vargis uses a dual-rate for allocating its costs based on employees, how much cost will be allocated to the two departments? (Use three decimal places in your calculations.)

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Definitions:

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