The Company ABC has 3 Departments. The Controller asked you how the best alternative is to distribute $50,000 received from Company Head Quarters. Department A: has 25 employees and budgeted expenses of $15,000. Department B: has 33 employees, and budgeted expenses of $10,000 and Department C: has 75 employees and budgeted expenses of $1,000. Each department has only one supervisor

Assume that each organization wishes to obtain the highest funding possible.

Required:

a. Which cost driver will each organization recommend be used to distribute the funds?

b. Which cost driver would you recommend and why?