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Kia Corporation has two departments, A and B. Central costs could be allocated to the...

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Accounting

Kia Corporation has two departments, A and B. Central costs could be allocated to the two departments in various ways. Square footage of department A and B 6,000 and 18,000 square feet respectively, Number of employees of department A and B 1,120 and 480 respectively, and sales of department A and B $400,000 and $2,000,000 respectively. If total processing costs of $96,000 are allocated on the basis of number of employees, the amount allocated to Department A would be:

a. $24,000

b. $28,000

c. $16,000

d. $67,200

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