Smart Choices Allocates Indirect Labour Costs to Its Two Departments

question 25

Multiple Choice

Smart Choices allocates indirect labour costs to its two departments, Lifestyle and Storage Solutions using number of employees per department as the cost driver. For the current year the number of employees in department Lifestyle are estimated to be 50 and for Storage Solutions department 30 and total indirect labour costs for the departments are budgeted at $1,400,000. The amount allocated to the departments are:

• A) Lifestyle $48,000: Storage Solutions $80,000
• B) Lifestyle $875,000: Storage Solutions $525,000
• C) Lifestyle $875,000: Storage Solutions $80,000
• D) Lifestyle $525,000: Storage Solutions $875,000

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Definitions:

Optimistic View

A tendency to look on the more favorable side of events or conditions and to expect the most favorable outcome.

Unconditional Positive Regard

A nonjudgmental acceptance and support of a person regardless of what the person says or does, as practiced in client-centered therapy.

Conditions Of Worth

Standards imposed by others, particularly during childhood, that one must meet in order to be considered valuable or worthy of love.

Rogers

Refers to Carl Rogers, an influential American psychologist and founder of humanistic psychology.