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

question 87

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 $100,000, and the accounting costs for the year totaled $50,000. The number of payroll checks issued and the number of reports for each department are as follows:
$\begin{array}{ccl}\text { Number }&\text { Number of } \\\text { of Reports }& \text { Payroll Checks }\\45 & 300 & \text { Department F } \\80 & 850 & \text { Department S } \\125 & 100 & \text { Department T }\end{array}$ Determine the amount of (a) payroll cost and (b) accounting cost to be apportioned to each department.

---

Definitions:

0.01

A numerical value representing one hundredth, often used in statistics, measurements, and as a decimal in mathematical calculations.

Product

The result of multiplying two numbers together.

Dividing

The act of separating or partitioning something into two or more parts or sections.

Cups

Commonly used household items that serve as containers for drinking liquids.