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

question 151

Multiple Choice

Answer the following questions using the information below:
At the Holden Company,the cost of the library and information centre has always been charged to the various departments based upon number of employees.Recently,opinions gathered from the department managers indicate that the number of engineers within a department might be a better predictor of library and information centre costs.
Total library and information centre costs are $75 000.
$\begin{array}{lrrr}\text { Department } & \underline{\mathbf{A}} & \underline{\mathbf{B}} & \mathbf{C} \\\text { Number of employees } & 125 & 500 & 125 \\\text { Number of engineers } & 0 & 75 & 25\end{array}$
-If the number of employees is considered the cost driver,what amount of library and information centre costs will be allocated to Department A?

• A)$56 250
• B)$12 500
• C)$0
• D)$50 000

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