Use the Following Information for the Next 3 Questions

question 13

Multiple Choice

Use the following information for the next 3 questions.
The personnel department provides service to operating departments A and B. Personnel's budget is based on 250 employees (100 in department A and 150 in department B) . The budget calls for $40,000 in fixed costs, plus $140 per employee. During a recent month the personnel department incurred $41,000 in fixed costs and $42,200 in variable costs. The two operating departments, A and B, had 120 and 140 employees, respectively.
-How much would be charged to department B if budgeted costs were allocated based on number of employees?

• A) $45,000
• B) $44,800
• C) $43,600
• D) $40,385

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Definitions:

Condominium Association Agreement

A legal document outlining the rules, regulations, and responsibilities of owning and managing condominium units within a shared property.

Standing to Sue

The legal right of an individual or entity to file a lawsuit, based on having a sufficient connection to and harm from the law or action challenged.

Privity of Contract

Privity of contract is a legal principle that only those parties who have entered into a contract have the right to sue to enforce their rights or claim damages under that contract.

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be legally enforceable, such as those involving real estate or contracts that cannot be performed within a year.