Stohr Company Has Two Departments, New and Old

Multiple Choice

Stohr Company has two departments, New and Old. Central costs are allocated to the two departments in various ways. Relevant information is presented below:

-If total payroll processing costs are $40,000 and they are allocated on the basis of number of employees, the amount allocated to the Old Department should be

A) $28,000.
B) $12,000.
C) $30,000.
D) $33,333.