Author Question: If direct labor-hours are considered the only overhead cost driver, what is the single cost driver ... (Read 151 times)

APUS57

  • Hero Member
  • *****
  • Posts: 571
If direct labor-hours are considered the only overhead cost driver, what is the single cost driver rate for Gregory?
 
  Gregory Company has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
 
  Cost Pool Overhead Costs Cost driver Activity level
  Supervision of direct labor 326,000 Direct labor-hours 900,000
  Machine maintenance 132,000 Machine-hours 960,000
  Facility rent 217,000 Square feet of area 100,000
   Total overhead costs 675,000
 
  The accounting records show the Mossman Job consumed the following resources:
 
   Cost driver Actual level
   Direct labor-hours 200
   Machine-hours 1,500
   Square feet of area 70
 
  A) 1.33 per direct labor-hour
  B) 0.80 per direct labor-hour
  C) 0.75 per direct labor-hour
  D) 1.25 per direct labor-hour

Question 2

The systematic allocation of land's cost to expense is called depreciation.
 a. True
  b. False
 
   Indicate whether the statement is true or false



amandanbreshears

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

Answer: C

Answer to Question 2

False



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

For a complete list of videos, visit our video library