A Department Store Apportions Payroll Costs on the Basis of the Number

Essay

A department store apportions payroll costs on the basis of the number of payroll checks issued. Accounting costs are apportioned on the basis of the number of reports. The payroll costs for the year were $100,000, and the accounting costs for the year totaled $50,000. The number of payroll checks issued and the number of reports for each department are as follows:
$\begin{array}{ccl}\text { Number }&\text { Number of } \\\text { of Reports }& \text { Payroll Checks }\\45 & 300 & \text { Department F } \\80 & 850 & \text { Department S } \\125 & 100 & \text { Department T }\end{array}$ Determine the amount of (a) payroll cost and (b) accounting cost to be apportioned to each department.