Sales Smart Allocates Indirect Labour Costs to Its Two Departments

question 6

Multiple Choice

Sales Smart allocates indirect labour costs to its two departments, F and M using number of employees per department as the cost driver. For the current year the number of employees in department F are estimated to be 80 and for M department 45 and total indirect labour costs for the departments are budgeted at $2,400,000. The amount allocated to the departments are:

• A) F $1,536,000: M $864,000
• B) F$800,000: M $1,600,000
• C) F $1,920,000: M $1,080,000
• D) F $1,600,000: M $800,000

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Definitions:

Cloud Computing

The provision of various services over the Internet, encompassing data storage, servers, databases, networking, and software.

Telecommuting

A work arrangement in which employees do not commute to a central place of work but instead work remotely, often from home, using the internet.

Chip-And-Pin Technology

A secure method for making credit and debit card transactions, using a microchip on the card and the cardholder entering a PIN.

LMS

Short for Learning Management System, it's a software application for the administration, documentation, tracking, reporting, and delivery of educational courses or training programs.