Smokey & the Bandit Corporation has three production departments Alpha, Beta, and Gamma. Smokey & the Bandit also has two service departments, Human Resources and Technology. Technology costs are allocated based on value of assets employed, and Human Resources costs are allocated based on number of employees. Assume that Technology provides more service to the other departments than does the Human Resources Department. Dept. Direct Costs Employees Asset Value Technology $900,000  25   Human Resources 350,000   $600,000 Alph 700,000 15 300,000 Beta 200,000  5 150,000 Gamma 250,000 10 800,000         Using the direct method, what amount of Human Resources costs is allocated to Alpha (round to the nearest dollar)? Group of answer choices $95.455 $350,000 $175,000 $450,000

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.