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At the Spring Valley Company, the cost of the personnel department has aways been charged to production departments based upon number of employees. Recently, opinions
At the Spring Valley Company, the cost of the personnel department has aways 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. Tatal personnel department costs are $293 000 Department A C Number of employees 280 21 60 245 Nurmber new hites 15 16 If the number of employees is considered the cost driver, what amourit of personnel cosls will be allocaled to Department A? (Rourid any intermediary calculations two decimal places and your firial aswer to the nearest dollar.) A. $29.300 B. $34.552 O C. $6,910 D 140,239 .. duct. 8,000 units were sold resulting in $83,000 of sales revenue, $21,000 of variable costs, and $20,000 of fixed costs. If variable costs decrease by $1.00 per unit, the new margin of safety is (Round intermediate allations to the nearest cent O A. S63.000 $21.000 S59,190 S83 000
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