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

question 71

Multiple Choice

Answer the following questions using the information below:
At the Verill Company, the cost of the library and information center 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 center costs.
 Total library and information center costs are $200,000 Department  A  B  C  Number of employees 135530135 Number of engineers 08020\begin{array}{l}\text { Total library and information center costs are } \$ 200,000 \text {. }\\\begin{array} { l r r r } \text { Department } & \text { A } & \text { B } & \text { C } \\\text { Number of employees } & 135 & 530 & 135 \\\text { Number of engineers } & 0 & 80 & 20\end{array}\end{array}
-If the number of employees is considered the cost driver,what amount of library and information center costs will be allocated to Department A?

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Definitions:

GEO

Commonly used as an abbreviation for geographical, related to the physical characteristics of the earth or the distribution of objects, people, or phenomena on Earth.

LEO

Low Earth Orbit, the region of space around the Earth at altitudes between approximately 160 to 2,000 kilometers.

MEO

Medium Earth Orbit, a type of orbit for satellites that is located approximately 2,000-35,786 kilometers above the Earth's surface.

GEO

An abbreviation for Geostationary Orbit, a circular orbit 35,786 kilometers above the Earth's equator and following the direction of the Earth's rotation.

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