Answer the Following Question(s)using the Information Below

question 73

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 new hires 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

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Definitions:

Marginal-Utility Schedules

Charts or tables showing the relationship between the quantity of a good consumed and the marginal utility or satisfaction received from consuming each additional unit.

Maximum Utility

The highest level of satisfaction or benefit that a consumer can obtain from consuming goods and services, given their income and prices of goods.

Satisfaction Per Dollar

A measure of the utility or happiness a consumer gains per unit of expenditure.

MUₐ /Pₐ

The ratio of marginal utility (MUₐ) to the price (Pₐ) of an item, often used in consumer choice theory to evaluate optimal consumption.