Author Question: At the Spring Valley Company Company, the cost of the personnel department has always been charged ... (Read 41 times)

newbem · **on:** Mar 6, 2021

At the Spring Valley Company Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.

Total personnel department costs are $282,000.

Department

A

B

C

Number of employees

90

280

210

Number of new hires

15

12

11

If the number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.)
◦ $43,759
◦ $6,845
◦ $109,980
◦ $47,913

ryansturges · **Reply #1 on:** Mar 6, 2021

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