Answer:
Biology department = $45,000
Chemistry department = $18,000
Physics department = $27,000
Explanation:
The total indirect costs are:
$46,000 of indirect salaries + $6,000 of office supplies + $38,000 of office rent = $90,000.
The total number of students is:
500 in biology + 200 in chemistry + 300 in physics = 1,000 students in total.
If we divide the total indirect costs by the total students we obtain the cost per student:
Cost per student = $90,000 / 1,000
= $90
To find what amounts to allocate, we multiply that number by the number of students in every deparment:
Biology = $90 x 500
= $45,000
Chemistry = $90 x 200
= $18,000
Physics = $90 x 300
= $27,000
