Determine the amount of payroll cost and accounting cost


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 departments and the average cost of store equipment and average cost of inventory for each are as follows:


Number of Number
Payroll Checks of Reports
Department R 300 45
Department S 850 80
Department T 100 125

Determine the amount of (a) payroll cost and (b) accounting cost to be apportioned to each department.

 

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Accounting Basics: Determine the amount of payroll cost and accounting cost
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