Cool Surfboards Has Two Departments Using the Services of the Payroll

Multiple Choice

Cool Surfboards has two departments using the services of the Payroll department. Total monthly payroll shared cost is $6,000. The Wave Blaster department has 15 employees that make 20 requests of the payroll department a month. The Boogie Break department has 5 employees that make 20 requests of the payroll department a month. Which of the following is TRUE?

A) If number of employees is used, Wave Blaster will receive a larger allocation of payroll costs than Boogie Break.
B) If number of requests is used, the departments will receive equal allocations of payroll costs.
C) Both of the above are correct.
D) Neither of the above are correct.