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Payroll department expenses at Brooks Construction Company totaled $84,000. Brooks has two divisions -- Residential and...

Payroll department expenses at Brooks Construction Company totaled $84,000. Brooks has two divisions -- Residential and Commercial. Payroll department costs are charged to divisions on the basis of the number of paychecks processed. During the period, the payroll department processed 2,900 checks for the Residential Division, and 850 checks for the Commercial Division. How much of the payroll department costs should be allocated to the Residential Division?

Group of answer choices

$24,620

$59,380

$64,960

$19,040

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Answer #1
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Total Check processed 2,900+850           3,750
Payroll department costs should be allocated to the Residential Division
$84,000/3,750*2,900 $        64,960
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