1.
3. 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 $231,000 and the accounting costs for the year totaled $75,500. The
departments and the average cost of store equipment and average cost of inventory for each are
as follows:
Number of Payroll Checks Number of Reports
Department R 483 70
Department S 1,470 85
Department T 147 345
Determine the amount of (a) payroll cost and (b) accounting cost to be apportioned to each
department.
show your work
Solution
3.)
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 $231,000 and the accounting costs for the year totaled $75,500. The departments and the
number
of payroll checks and accounting reports for each are as follows:
a. Determine the amount of payroll cost.
Department R

2.
$ 53,130
Department S
$ 161,700
Department T
$ 16,170
Total
$ 231000
b. Determine the accounting cost to be apportioned to each department.
Department R
$ 10570
Department S
$ 12835
Department T
$ 52095
Total
$ 75500
Department R $ 53,130
Department S $ 161,700
Department T $ 16,170
Total $ 231000