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Q4. Overhead costs are allocated to cost obiects in an activity-based costing system in the following manner: traced to departments, then costs are traced to
Q4. Overhead costs are allocated to cost obiects in an activity-based costing system in the following manner: traced to departments, then costs are traced to products. traced to activities, then costs are traced to products. traced to activities, then costs are traced to departments and then a) Overhead costs are b) Overhead costs are c) Overhead costs are allocated to products. d) Overhead costs are traced from resources to cost objects. (GS, Universal Automotive Groun is a maker of engines for high performance cars and uses a Q6. Bunyard Corporation has two operating divisions-an Atlantic Division and a Pacific Division. The company's Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $45 per shipment. The Logistics Department's fixed at $212,400 for the year. The fixed costs of the Logistics Department budgeted costs are are determined based on peak-period demand. Percentage of Peak Period Capacity Required 35 Budgeted Shipments 1.100 2.500 Atlantic Division.... Pacific Divisio... 650 At the end of the year, actual Logistics Department variable costs totaled $202,400 and fixed costs totaled $223,900. The Atlantic Division had a total of 2,100 shipments and the Pacific Division had a total of 2,300 shipments for the year. How much Logistics Department cost should be charged to the Pacific Division at the end of the year for performance evaluation purposes? a) $241,560 b) $222,839 c) $251,335 d) $214,527
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