Logan Corporation has 125 employees, 40 in "A-line," and 85 in "B-line." Logan incurred $310,000 in fringe benefits costs last year. How much in fringe benefit costs should be allocated to "A-line"?

Multiple Choice

• $310,000

• $198,400

• $99,200

• cannot determine from the information given.

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2)

The Science Institute has three departments: Biology, Chemistry, and Physics. The institute's controller wants to estimate the cost of operating each department. He has identified several indirect costs that must be allocated to each department including $55,000 of indirect salaries, $10,500 of office supplies, and $42,500 of office rent. There are 500 students in the biology department, 200 in chemistry and 300 in physics (1,000 total students as the allocation base). The amount of cost that should be allocated to the Chemistry Department is

Multiple Choice

• $54,000.

• $21,600.

• $32,400.

• There is no correct answer.