City Inspections Has Three Departments Using the Services of the Payroll

Multiple Choice

City Inspections has three departments using the services of the Payroll Department. Total monthly payroll shared cost is $20,000. The Annual inspections department has 5 employees that make 20 requests. The Emergency services department has 8 employees that make 50 requests. The Roads Division has 7 employees that make 30 requests. Which is the best method to allocate shared payroll costs?

A) Number of employees
B) Operating income
C) Number of employee requests
D) Either A or C