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Advertising Guru allocates human resource expenses to its two departments, Business customers and Charity customers, using number of employees as the cost driver. The Business
Advertising Guru allocates human resource expenses to its two departments, Business customers and Charity customers, using number of employees as the cost driver. The Business department has 30 employees, while Charity division has 20 employees. Total human resource expenses are budgeted at $100 000. What is the indirect cost rate?
a.$2,000 per employee
b.$4,000 per employee
c.$5,000 per employee
d.$8,000 per employee
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