A Department Store Apportions Payroll Costs on the Basis of the Number

question 180

Essay

A department store apportions payroll costs on the basis of the number of payroll checks issued. Accounting costs are apportioned on the basis of the number of reports. The payroll costs for the year were $231,000 and the accounting costs for the year totaled $75,500. The departments and the number of payroll checks and accounting reports for each are as follows:
Determine the amount of (a) payroll cost and (b) accounting cost to be apportioned to each department.

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Definitions:

Summary Judgment

A legal determination made by a court without a full trial, typically ruling that no material facts are in dispute and that one party is entitled to judgment as a matter of law.

Pleadings

Formal statements made by the plaintiff and the defendant in a lawsuit that detail the facts, allegations, and defenses involved in the litigation; the complaint and answer are part of the pleadings.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to unintended injury to another party.

Certified Mail

A postal service that provides the sender with a mailing receipt and electronic verification that a letter or package has been delivered.