Smith and Hawk Landscaping Company uses a centralized payroll department to support its 3 divisions. It incurs $45,000 year to run this department and allocates the cost of this department based upon the number of employees in each division. The detail is as follows: Division Number of Employees Residential Landscaping 50 Commercial Landscaping 120 Irrigation Services 30 200 Total How much of the $45,000 should be allocated to each division?
Smith and Hawk Landscaping Company uses a centralized payroll department to support its 3 divisions. It incurs $45,000 year to run this department and allocates the cost of this department based upon the number of employees in each division. The detail is as follows: Division Number of Employees Residential Landscaping 50 Commercial Landscaping 120 Irrigation Services 30 200 Total How much of the $45,000 should be allocated to each division?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Smith and Hawk Landscaping Company uses a centralized
payroll department to support its 3 divisions. It incurs
$45,000 year to run this department and allocates the cost
of this department based upon the number of employees in
each division. The detail is as follows:
Division
Number of Employees
Residential Landscaping 50
Commercial Landscaping 120
Irrigation Services
30
200
Total
How much of the $45,000 should be allocated to each
division?
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