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

Question

3 years ago

7

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.

1 answer:

Nitella [24] · Answer 1 · 2022-03-20T05:23:20+03:00

Answer:

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