Answer the Following Questions Using the Information Below:
at the Gregan

question 106

Multiple Choice

Answer the following questions using the information below:
At the Gregan 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 $320 000.
$$\begin{array} { l r r r } \text { Department } & \underline { \mathbf { A } } & \underline { \mathbf { B } } & \underline { \mathrm { C } } \\\text { Number of employees } & 30 & 270 & 100 \\\text { The number of new hires } & 8 & 12 & 5\end{array}$$
-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)$102 400
• C)$40 000
• D)$10 666

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Definitions:

Central Nervous

Pertains to the central nervous system, which consists of the brain and spinal cord, responsible for processing and transmitting information throughout the body.

Limbic

Refers to the limbic system, a complex system of nerves and networks in the brain, involved with instinct and mood. It controls the basic emotions and drives.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the muscles and glands.

Internal Organs

Organs located inside the body that perform essential functions, such as the heart, liver, kidneys, and lungs.