Sales Smart Allocates Advertising Expenses to Its Two Departments, F

question 13

Multiple Choice

Sales Smart allocates advertising expenses to its two departments, F and M, using sales as the cost driver. For the current year the sales for department F are estimated to be $900,000 and for department M $600,000 and total advertising expenses are budgeted at $55,000. The indirect cost rate is:

• A) F$33,000: M $22,000
• B) $.036 per sales dollar
• C) F$.0611: M $.0917 per sales dollar
• D) F$36,667: M $18,333

Grasp the basic elements of a legally binding contract.

Understand the various forms of intellectual property, including patents, copyrights, and trademarks.

Analyze the impact of bankruptcy on small businesses.

Recognize the significance of OSHA workplace standards.

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Definitions:

Potential Bottlenecks

Points in the production process that can cause delays due to limited capacity or resources, impacting overall productivity.

Cash Collections

The total amount of money received from customers over a period, including payments for goods or services sold.

Schedule Of Cash Collections

A detailed plan that shows when a company expects to receive cash from accounts receivable or other revenue sources.

Direct Labor Budget

A direct labor budget is a financial plan that estimates the total cost of direct labor required to meet the production needs of a business.