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

Essay

A department store allocates payroll costs on the basis of the number of payroll checks issued. Accounting costs are allocated 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 costs and (b) accounting costs to be allocated to each department.