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svetlana [45]
3 years ago
7

Solomon Services Company has 69 employees, 29 of whom are assigned to Division A and 40 to Division B. Solomon incurred $413,310

of fringe benefits cost during 2018. Required: Determine the amount of the fringe benefits cost to be allocated to Division A and to Division B.
Business
1 answer:
Nitella [24]3 years ago
5 0

Answer:

  • Division A - $173,710
  • Division B - $239,600

Explanation:

First determine the fringe benefits per employee for the whole company;

= 413,310 / 69

= $5,990 per employee

Division A has 29 employees so the fringe benefit cost is;

= 29 * 5,990

= $173,710

Division B has 40 employees so the fringe benefit cost is;

= 40 * 5,990

= $239,600

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