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:

Habitat Isolation

A type of prezygotic barrier where two species that could interbreed do not, because they inhabit different habitats and rarely encounter each other.

Environmental Isolation

The separation of population groups by physical barriers or distances, leading to genetic divergence and potentially speciation.

Biological Isolation

The separation of populations of the same species or different species that prevents genetic exchange, often leading to speciation.

Temporal Isolation

A mechanism that prevents species from mating because they breed at different times, contributing to reproductive isolation and speciation.