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 $10,000. The Annual inspections department has 5 employees that make 20 requests. The Emergency services department has 8 employees that make 50 requests. The Roads department has 7 employees that make 30 requests. If City Inspections allocates shared payroll costs using number of reports as the allocation base, how much of the payroll costs will be allocated to the Annual inspections department?

A) $5,000
B) $3,000
C) $2,000
D) $4,000