Kennedy Company Has Two Departments, Hot and Cold $\begin{array}{lll}&\text { Hot }&\text { Cold }\\\text { Square footage } & 1,500 & 4,500 \\\text { Number of employees } & 280 & 120\end{array}$

Kennedy Company has two departments, Hot and Cold. Relevant information is presented below: $\begin{array}{lll}&\text { Hot }&\text { Cold }\\\text { Square footage } & 1,500 & 4,500 \\\text { Number of employees } & 280 & 120\end{array}$ If total payroll processing costs are $24,000 and they are allocated on the basis of number of employees, the amount allocated to the Hot Department should be:

A) $7,200
B) $4,000
C) $16,800
D) $6,000

Correct Answer:

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