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 101 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
Thanks for the timely response, appreciate it

marict

  • Member
  • Posts: 304
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Percentages of adolescents indicating Benefits and Costs of employment. Percentages of adolescents indicating Benefits and Costs of employment.
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 ...
How to calculate fuel costs How to calculate fuel costs
Rapidly decreasing sequence costs have enabled the rapid expansion Rapidly decreasing sequence costs have enabled the rapid expansion
Irene Manufacturing uses a predetermined overhead allocation rate based on a percentage of ... Irene Manufacturing uses a predetermined overhead allocation rate based on a percentage of ...
Video: Hemoglobin's affinity with oxygen - carbon dioxide, temperature and bisphosphoglycerate (BPG)

For a complete list of videos, visit our video library