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:

Electric Shock

A sudden discharge of electricity through a part of the human body, causing various effects from mild discomfort to serious injury or even death.

Development

The process of change and growth in humans or animals, which can be physical, cognitive, or social, from infancy through adulthood.

Phobias

Intense, irrational fears of specific objects or situations that significantly impair an individual's ability to function.

Predict

To predict means to declare or indicate in advance; especially, to foretell on the basis of observation, experience, or scientific reason.