Question

The payroll department provides services for several plants in the city of yee haw junction. the payroll department's budget is $100,000 and it issues 4,000 checks every other week. the lighting plant has 1,000 employees. how much should the lighting plant be charged from the payroll department for its services?

Answer 1

Answer:

The amount that the lighting plant be charged from the payroll department for its services is $25,000

Explanation:

Provided data from the question:

Payroll budget = $100,000

number of checks issued per week = 4000

number of employees = 1000

Since, the service department charge rate is calculated as the total service department expense divided by total service department usage, the amount that should be charged from the payroll department for its services;

= $100,000 ÷ 4,000

= $25 × 1,000

= $25,000.