At the Spring Valley Company Company, the Cost of the Personnel

question 34

Multiple Choice

At the Spring Valley Company Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.
Total personnel department costs are $282,000.

If the number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.)

• A) $43,759
• B) $6,845
• C) $109,980
• D) $47,913

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Definitions:

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Seroconversion

The process by which a person develops antibodies.

Opsonization

A process by which pathogens are marked for destruction by the immune system through the binding of antibodies or complement proteins.

Acquired Immunodeficiency Syndrome

A chronic, potentially life-threatening condition caused by the human immunodeficiency virus (HIV) which damages the immune system.