Week 2 Part 1 Quiz Copy
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Question 1 of 3
1. Question
Searpon, an online book retailer, has two operating departments, corporate sales and consumer sales, and two support departments, human resources and information systems. Each sales department conducts merchandising and marketing operations independently. Searpon uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September 2017:
Department level
Human resources
Information Technology
Corporate
sales
Consumer
sales
Budgeted costs
£ 1,600,000
£ 1,000,000
£ 3,000,000
£ 7,500,000
Budgeted processing hours
80
40
400
320
Employees
20
10
40
150
Using the direct method, what amount of HR costs will be allocated to Corporate sales?
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HR to Corporate Sales will be
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Question 2 of 3
2. Question
Using the step-down method, what amount of HR costs will be allocated to Consumer sales if the service department with the highest percentage of interdepartmental support service is allocated first?
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HR to Consumer sales will be
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Question 3 of 3
3. Question
Using the reciprocal method, what amount of IT costs will be allocated to Corporate sales?
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IT to Corporate Sales will be
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