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

question 132

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 new hires is considered the cost driver,what amount of personnel costs will be allocated to Department A?

• A)$24 000
• B)$40 000
• C)$102 400
• D)$10 666

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Definitions:

Feet

A unit of length in the imperial and US customary systems, equal to 12 inches or 0.3048 meters.

12-Gauge

A term commonly referring to the caliber of a shotgun, based on the number of lead balls of size equal to the shotgun's bore that can be made from one pound of lead.

Copper Wire

A type of electrical conductor made of copper, used in wiring for its excellent conductivity.

Acres

A unit of land area used in the imperial and US customary systems, equal to 43,560 square feet, or about 4047 square meters.