Cool Surfboards Has Two Departments That Both Use the Services

Multiple Choice

Cool Surfboards has two departments that both use the services of a department. The Wave Blaster department has 15 employees that reserved 60 hours of conference room time. The Boogie Break department has 5 employees that reserved 100 hours of conference room time. Which of the following is TRUE?

A) Allocation based on employees would allocate a smaller amount of cost to Boogie Break.
B) Allocation based on time used would allocate a larger amount of cost to Wave Blaster.
C) Allocation based on operating income would allocate a larger amount of cost to Wave Blaster.
D) We cannot determine the answer from the information given.