City Inspections Has Three Departments Using the Services of the Legal

Multiple Choice

City Inspections has three departments using the services of the Legal Department. Total monthly shared legal department cost is $20,000. The Annual inspections department has 5 employees that used 100 hours of legal services. The Emergency services department has 8 employees that used 200 hours of legal services. The Roads Division has 7 employees that used 300 hours of legal services. Which is the best method to allocate shared legal costs?

A) Number of employees
B) Operating income
C) Number of hours of legal services
D) Either B or C