The Fixed Costs of Baxter Company's Personnel Department Are Allocated

question 4

Multiple Choice

The fixed costs of Baxter Company's personnel department are allocated to operating departments on the basis of direct labor-hours. The following data have been provided: The fixed costs of the personnel department are budgeted at $56,000 per year and are incurred in order to support long-run average requirements. How much of this fixed cost should be charged to Operating Department X at the end of the year for performance evaluation purposes?

• A)$35,000
• B)$33,600
• C)$52,500
• D)$22,400

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