Licorice, Inc., has two producing departments, P1 and P2, and two support departments, A and B. Department A serves Departments P1 and P2 in the percentages 45 percent and 55 percent. Department B serves Departments A, P1, and P2 in the percentages 15 percent, 55 percent, and 30 percent. Direct department costs for P1, P2, A, and B are $90,000, $84,000, $15,000, and $10,000, respectively. Compute the total costs to be allocated from Department A.
a. $16,500
b. $15,000
c. $17,250
d. $18,000

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.