Interview accounting question

Question

The school has been given $17,000 to be distributed to the fourth grade teachers so they can purchase equipment. The principal has asked you to withhold 10% of the budget for other needs later in the year, and to distribute the remainder of the funds among the teachers based on the number of years the teacher has at the school. The longer the teacher has been at the school, the more money proportionally they should receive.
The following is a list of teachers and the number of years at the school. Please indicate below the amount each teacher should receive.
(Attach your adding machine tape to the upper left corner of this page upon completion of the activity.)

Mr. Smith 11 years
Mrs. Jones 6 years
Mrs. Davis 4 years
Mr. Richards 3 years
Ms. Sanders 1 year

Answer 1

$17,000 * 10% = $1,700 for needs later in the year

 

$17,000 - $1,700 = $15,300 for equipment

 

When you add the years up for all the teachers ...

 

11 + 6 + 4 + 3 + 1 = 25 years

 

Then you determine their portion by dividing each teacher's years by the total number of years:

 

Mr. Smith 11 yrs, so 11 / 25 = 0.44, then 0.44 * $15,300 = $6,732
Mrs. Jones 6 yrs, so 6 / 25 = 0.24, then 0.24 * $15,300 = $3,672
Mrs. Davis 4 yrs, so 4 / 25 = 0.15, then 0.16 * $15,300 = $2,448
Mr. Richards 3 yrs, so 3 / 25 = 0.12, then 0.12 * $15,300 = $1,836
Ms. Sanders 1 yr, so 1 / 25 = 0.04, then 0.04 * $15,300 = $612

 

which all totals $15,300.

Answer 2

First set aside the 10% required for other needs , then distribute balance to each teacher based on weighted average (Smith = 11/25)     Take it from there!  Good luck on the job interview................