Why is the use of departmental overhead allocation rates considered a refinement over the use of a single plantwide overhead allocation rate?

Q: What is the role of materials requisition forms in a job-order costing system? Time tickets?…

A: A job costing system must be capable of determining the amount of direct supplies, direct labor, and…

Q: Why is the calculation of equivalent units of production needed in a process costing system?

A: Process costing:   It is a method of cost accounting, which is used where the production is…

Q: Is it true that when departmentalized rates is used to allocate overhead costs, all departments…

A: Departmental overhead rates area unit employed by several makers rather than employing a single,…

Q: In choosing the cost pool, the simplest allocation method is

A: In choosing the cost pool, the simplest allocation method is b. Activity center allocation

Q: Which of the following is not a factory overhead allocation method? a.activity-based costing…

A: Introduction: Various cost allocation methods are used to allocate factory operating costs to units…

Q: What is the formula to compute the predetermined overhead allocation rate?

A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…

Q: Is it true that under the sequential method of cost allocation, the final amount of pesos allocated…

A: Throughout this text, we've got emphasized value allocations solely within the in operation…

Q: How has been the implementation of activity based costing in the service sector

A: Activity based costing: It is the method of allocating the cost of overheads by assigning these…

Q: Assigning indirect costs to departments is completed by ________.

A: Indirect costs are those costs that are not directly related with the production or selling. These…

Q: In a process costing system, which account shows the overhead assigned to the department?

A: Process Costing: Process costing is a method of cost accounting in which all the costs that are…

Q: estimate the overhead and find the overhead allocation rate for de

A: 1.                                                          Estimation of Overhead and Overhead rate…

Q: Distinguish between the product-costing and control purposes of standardcosts for factory…

A: Standard Costing: Standard costing is an accounting tool which is used to measure the variances in…

Q: What is a plantwide overhead rate? Why are multiple overhead rates, rather than a plantwide overhead…

A: Plantwide overhead rate is a single overhead rate which is used by the company to allocate it's…

Q: how do i calculate allocated manufacturing overhead by department

A: Manufacturing overhead: The cost incurred in production process other than the cost of direct…

Q: Activity-based-costing *   a. allocates overhead to multiple activity cost pools, and it then…

A: Activity-based costing: Activity based costing is the method of costing which is used to assign…

Q: Compare the total support department costs allocated to each production department under each cost…

A: Calculation of the total support department costs to the Cutting department under the direct method…

Q: Describe the distinctive characteristic of FIFO computations in assigning costs to units completed…

A: First-In-First-Out (FIFO): First-In-First-Out (FIFO) method is the method in which costs are…

Q: Which of the following is referred to as the second stage of cost allocation? O The allocation of…

A: Cost allocation is the assigning and allocating the cost to the specific objects, departments,…

Q: Why is using a single plantwide overhead allocation rate not always accurate?

A: Single plant wide rate: Single plant-wide rate is the traditional method that is used to allocate…

Q: how to solve plantwide overhead rate versus departmental rates, effects on pricing decisions?

A: Since there are multiple sub parts in the question, calculation will be given for first three sub…

Q: process productivity

A: Process productivity = Good units produced/Processing time(total hours)

Q: how to allocate manufacturing overhead by department?

A: Manufacturing overhead costs: The costs, which do not relate openly with the manufacturing of…

Q: Explain how overhead is assigned to production when a predetermined overhead rate is used?

A: Overhead is kind of cost or expenditure which is not directly related to manufacturing but somehow…

Q: How is the predetermined overhead allocation rate used to allocate overhead?

A: Predetermined Overhead Rate: Predetermined overhead rate is a measure used to allocate the estimated…

Q: Which statement is accurate concerning the FIFO method for assigning costs in a process costing…

A: The correct answer is Option (a).

Q: Required a. Assume that you are the supervisor of Department I. Choose the allocation base that…

A: Solution Formula for allocation Overhead allocation rate =total overhead/ allocation base Total…

Q: The direct method as used is one method that can be used to re-assign service department cost.…

A: Overhead refers to continuing business expenses that are not directly related to the production of a…

Q: Describe how a single plantwide overhead allocation rate is used.

A: Cost: It refers to the economic value incurred by a company to produce a product or a service.

Q: How is the predetermined overhead allocation rate used by service companies?

A: Definition:   Manufacturing Overheads:   Predetermined manufacturing overhead rate is the rate that…

Q: In a process costing system, which account shows the overhead assigned to the department?A. cost of…

A: Process costing appears to be an accounting approach often used by organizations that mass produce…

Q: In a process costing system, costs incurred in one department remain there rather than being…

A: Lets understand the basics. Process costing is as name suggest useful when there is multiple uniform…

Q: How would the process-costing computations differ from those illustrated in the chapter if overhead…

A: Process Costing: It is a method of cost accounting used by an enterprise with processes categorised…

Q: Which one of the following is considered a basic similarity between job order cost and process cost…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: In an effort to simplify the multiple production department factory overhead rate method, the same…

A: Multiple production department factory overhead method identifies different departments in the…

Q: Describe the two-stage process associated with plantwide overhead rates.

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: REQUIRED: Determined the amount of factory overhead cost of service departments allocated to…

A: Activity-based costing is a costing method where the indirect cost is assigned to the jobs,…

Q: Why should the accountant distinguish between transferred-in costs and additional direct materials…

A: Cost:  Cost refers to the expenses incurred by the business to earn revenue from sales, in other…

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.