Question
please answer all Support department costs are simply combined with all other overhead costs and total overhead is applied using one cost driver. Drag answer
please answer all
Support department costs are simply combined with all other overhead costs and total overhead is applied using one cost driver. |
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Overhead costs are first directly traced or distributed to support and production departments; support department costs are then allocated to production departments based on the amount of support activity used by each production department. |
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Overhead costs are first directly traced or distributed to support and production activities, then support activity costs are allocated to production activities based on the amount of support activity used by each production activity; production activity costs are applied to the products using cost drivers for each production activity. |
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choose one of the following to answer the question Activity-based costing, Multiple production department rates, Single plantwide overhead rate
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2. The following scenarios are encountered by Lillie Manufacturing Company in its many production facilities around the country. As the managerial accountant, you are asked to choose an appropriate support department cost allocation method. Indicate whether the scenario warrants the use of a single plantwide rate, multiple production department rates, or activity-based costing. Use each method only once.
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Scenario 1: Lillie Manufacturing has a plant in Wisconsin that manufactures one product in one department with 25 employees and one plant manager. It runs one 8-hour shift a day.
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Drag answer here
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Scenario 3: Lillie Manufacturing has a plant in Florida that has two support departments that both have limited activities performed by the departments. It has three production departments that build two simple products. This plant employs 100 people in the production facility and has two 8-hour shifts running five days a week.
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Scenario 2: Lillie Manufacturing has a plant in Minnesota that has five support departments that all have several activities performed within the departments. It has seven production departments that build very complex multistep products that require many production activities. This plant employs 5,000 people in the production facility and has three 8-hour shifts running six days a week.
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Drag answer here
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Single plantwide rate
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Activity-based costing
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Multiple production department rates
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