Answer the Following Question(s)using the Information Below

question 244

Multiple Choice

Answer the following question(s) using the information below:
At the Todd Company, the cost of the personnel department has always been charged to the various departments based upon the number of employees.Recently, opinions gathered from the department managers indicated that the number of new hires might also be a predictor of personnel costs to be assigned.Total personnel costs are $320,000.
-If the number of employees is considered the cost driver, what amount of personnel costs will be allocated to Department A?

• A)$24,000
• B)$10,667
• C)$102,400
• D)$40,000
• E)$50,000