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Given for firm XYZ, the plantwide rate is $195 per machine hour. If firm XYZ follows departmental allocation method, department 1's allocation rate is $190
Given for firm XYZ, the plantwide rate is $195 per machine hour. If firm XYZ follows departmental allocation method, department 1's allocation rate is $190 per machine hour, department 2's allocation rate is $280 per machine hour, and departmental 3's allocation rate is $180 per machine hour. Which department(s) will be overcosted if costs has been allocated based on the plantwide rate?
Question 17 options:
1 | Department 1 and department 3. |
2 | Department 2, and department 3. |
3 | Department 1, department 2, and department 3. |
4 | Department 2 only. |
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