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

question 82

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

• A) $30,000
• B) $33,750
• C) $0
• D) $66,667

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