This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Gregory Enterprises has identified three cost pools to allocate overhead costs. The following ... (Read 136 times)

PhilipSeeMore

  • Hero Member
  • *****
  • Posts: 561
on: Mar 6, 2021
Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:

Cost PoolOverhead CostsCost driverActivity level
Supervision of direct labor$320,000Direct labor-hours800,000
Machine maintenance$120,000Machine-hours960,000
Facility rent$200,000Square feet of area100,000
Total overhead costs$640,000

The accounting records show the Mossman Job consumed the following resources:

Cost driverActual level
Direct labor-hours200
Machine-hours1,600
Square feet of area50

Which method of allocation probably best estimates actual overhead costs used? Why?
◦ Single direct labor-hours cost driver because it is best to allocate total costs uniformly to individual jobs.
◦ Single direct labor-hours cost driver because it is easiest to analyze and interpret.
◦ Three activity-cost drivers because they best reflect the relative consumption of resources.
◦ Three activity-cost drivers because product costs can be significantly cross-subsidized.
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by PhilipSeeMore on Mar 6, 2021

Sierray

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 64% of students answer this correctly


PhilipSeeMore

  • Member
  • Posts: 561
Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

covalentbond

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

An ECG strip showing a normal sinus rhythm with the P wave, QRS complex, and T wave identified. An ECG strip showing a normal sinus rhythm with the P wave, QRS complex, and T wave identified.
Patent medicines contained a name brand that clearly identified the product and claimed to cure just ... Patent medicines contained a name brand that clearly identified the product and claimed to cure just ...
An overhead camshaft engine equipped with variable valve timing on both the intake and exhaust ... An overhead camshaft engine equipped with variable valve timing on both the intake and exhaust ...
This spark plug boot on an overhead camshaft engine has been arcing to the valve cover causing a ... This spark plug boot on an overhead camshaft engine has been arcing to the valve cover causing a ...
Overhead stretch for the shoulder muscles. Lean back to create the stretch using your body weight. Overhead stretch for the shoulder muscles. Lean back to create the stretch using your body weight.
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ... Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
Video: Import of Dietary Glucose from Intestines to Bloodstream

For a complete list of videos, visit our video library