Allocating support departments-operating departments

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Reference no: EM1348983

Cool Surfboards has two departments using the services of the Payroll department. Total monthly payroll shared cost is $6,000. The departments allocate payroll costs based on number of employees. The Wave Blaster department has 15 employees and the Boogie Break department has 5 employees.

a) What is the amount of payroll costs allocated to the Boogie Break department?

b) What is the amount of payroll costs allocated to the Wave Blaster department?

Reference no: EM1348983

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