Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
At the Todd Company, the cost of the personnel department has always been charged to production departments based upon number of employees. Recently, opinions gathered from the department managers indicate that the number of new hires might be a better predictor of personnel costs.

-If the number of new hires is considered the cost driver, what amount of personnel costs will be allocated to Department A?

A) $24,000
B) $10,667
C) $102,400
D) $40,000