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

question 16

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 engineers 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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Definitions:

Income Distributions

The payment of earnings from investments, such as dividends from stocks or interest from bonds, to investors.

NAV

Net Asset Value indicates the price per share or unit of a fund at a given date or time.

Capital Gain Distributions

The payment of proceeds realized from the sale of an asset held in a mutual fund or ETF, distributed to investors as a taxable distribution.

Income Distributions

Payments, often periodic, received by investors from assets they own, such as dividends from stocks or interest from bonds.