Question
When a single plantwide overhead rate is used to apply overhead to products, support department costs are a.impossible to trace. b.allocated with multiple drivers using
When a single plantwide overhead rate is used to apply overhead to products, support department costs are
a.impossible to trace. b.allocated with multiple drivers using a single rate. c.nonexistent, because a single plantwide rate cannot be used when a company has support departments. d.combined with all other overhead costs.
Which of the following statements regarding direct costs is true?
a.All direct costs of a support department are accumulated in the department, and general factory overhead is never assigned to the department.
b.All direct costs of a support department are accumulated in the department, and some general factory overhead may be assigned to the department.
c.All direct costs of a support department are assigned by a driver to the department, and some general factory overhead may be directly accumulated in the department.
d.None of these choices are correct.
Which of the following is not a support department?
a.The department that produces pizza boxes in a paper container manufacturing facility
b.The Machine Repair Department in a picture frame manufacturing facility
c.The Machine Maintenance Department that provides routine maintenance in a diesel engine manufacturing facility
d.The Janitorial Department in a plastic salad container manufacturing facility
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