Pederson Uses the Direct Method of Cost Allocation and Allocates

question 30

Multiple Choice

Pederson uses the direct method of cost allocation and allocates cost on the basis of employees.If Human Resources cost amounts to $1,800,000,how much of the department's cost would be allocated to Assembly?

• A)$900,000.
• B)$720,000.
• C)$1,080,000.
• D)$1,200,000.
• E)Some other amount.

---

Definitions:

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions, intended to harmonize the law of sales and other commercial agreements within the United States.

Underwriter

In insurance law, the insurer, or the one assuming a risk in return for the payment of a premium.

Premium

The amount paid for an insurance policy, reflecting the cost of coverage.

Insurable Interest

An interest either in a person’s life or well-being or in property that is sufficiently substantial to justify insuring against injury to or death of the person or damage to the property.