The Science Institute has three departments: Biology, Chemistry, and Physics. The institute's controller wants to...
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The Science Institute has three departments: Biology, Chemistry, and Physics. The institute's controller wants to estimate the cost of operating each department. He has identified several indirect costs that must be allocated to each department including $45,000 of indirect salaries, $5,500 of office supplies, and $37,500 of office rent. There are 500 students in the biology department, 200 in chemistry and 300 in physics (1,000 total students as the allocation base). The amount of cost that should be allocated to the Chemistry Department is:
A. $44,000.
B. $17,600.
C. $26,400.
D. There is no correct answer.
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