Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. b. The allocations are made in the reverse order (starting with Cafeteria).

Q: The reason for charging indirect costs to cost centres is to: A. Calculate the cost of direct…

A: Lets understand the basics. Indirect costs are cost which are not directly related to product or…

Q: Calculate the costs transferred out of each department.

A: Given: Mixing Dept.  Amount  Cooking Dept.  Amount  Packaging Dept.  Amount  Direct materials…

Q: Using the seven-step approach for assigning costs put the following four steps in the correct order:…

A: The seven step approach is used to assign the costs to individual jobs. In job costing several jobs…

Q: In the blank next to the following terms, place the letter A through D corresponding to the best…

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: All the following can be used as an allocation base , EXCEPT : a All of the given answers can be…

A: Allocation base means base used to allocate costs between various jobs and products.

Q: he step-down allocation method: a. recognizes the total amount of services that support departments…

A: Direct method of overhead allocation means a method where overhead of support department is direct…

Q: Which of the following represent the right process order for cost allocation: Select one: O a.…

A: Cost Allocation is the process of identifying and assigning costs to the various cost objects. These…

Q: equired: llocate the service department costs using the step method, starting with the Maintenance…

A: Computation of allocation of service department overhead costs based step method is shown below  The…

Q: Required: Use the step method to allocate the service costs, using the following: a. The order of…

A: Working notes for allocation of costs starts with maintenance   Maintenance costs are allocated to…

Q: customer level - group level - service level - facility level?

A: In the field of accounting, activity-based costing and traditional costing are two different methods…

Q: Using the FIFO method, prepare the following for the Assembly a. A physical flow schedule b. An…

A: FIFO termed as First in First Out which is a method inventory that determine the cost on the grounds…

Q: Which of the following descriptions is notcorrect?a. The routing sheet shows the manufacturingpath…

A: Production cost comprises of total costs that are incurred in the process of bringing a product to…

Q: The first step in applying the activity-based costing method is a. Identifying the cost drivers b.…

A: Activity Based Costing: Activity-based costing is a costing method in which a company identifies…

Q: Required: Use the step method to allocate the service department costs to the production…

A: The above step method of allocation is shown below :

Q: how can we use step down cost allocation for ? From service center to mission center

A: Answer

Q: Required: Compute for the total cost transferred to the next department using average costing. *…

A: The equivalent units are calculated on the basis of percentage of the work completed during the…

Q: Required: Use the step method to allocate the service costs, using the following: a. The order of…

A: Solution:- a)Allocate the costs of service departments using step down method as follows under:-…

Q: Activity based costing

A: Definition: Costing: Costing is calculated as an amount spent by the company in order to produce a…

Q: Calculate the cost allocation base per customer.   Compute the appropriate cost drivers for the…

A: solution : let us first note down the indirect costs Energy cost 4200 Machine and…

Q: Help question 33

A: Answer: Option C is the correct answer.

Q: Using the traditional system, determine the operating profit per unit for each style of faucet.…

A: The difference between the traditional and activity based costing system lies in the treatment of…

Q: Using the step method to allocate the service center costs, what is the total cost of programming…

A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…

Q: Use T-accounts to showthe flow of costs in ajob-order costing system.

A: Every industry maintains different inventory accounts and every industry can use job order costing.…

Q: Activity-based-costing *   a. allocates overhead to multiple activity cost pools, and it then…

A: Activity-based costing: Activity based costing is the method of costing which is used to assign…

Q: Cost classifications For each of the following costs, check the columns that most likely apply (both…

A: Introduction:   There are three types of costs according to the unit of production; Variable, Fixed…

Q: Costs that must be allocated in order to be assigned to a product or department are called direct…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: Which of the following is referred to as the second stage of cost allocation? O The allocation of…

A: Cost allocation is the assigning and allocating the cost to the specific objects, departments,…

Q: S1 - After service department costs are allocated to other departments, costs are re-circulated back…

A: Solution: S1- After service department costs are allocated to other departments, costs are…

Q: Describe the difference between direct and step-down methods to allocate service department costs to…

A: Service departments are those department which provides services to other departments like other…

Q: ssume that Kizzle's management allocates Maintenance costs based on the number of servicê calls.…

A: 2)i)Maintenance cost allocation: Janitorial = 16/80 x 5,000 = 1,000 Mixing = 40/80 x 5,000 = 2,500…

Q: Indicate whether the following statement is true or false, then support your view. By using a…

A: Traditional method of costing is the method of allocating overheads based on the single cost driver.…

Q: Required: Prepare an overhead analysis sheet to apportion the overheads to the various cost centres…

A: The question provides indirect material and labour cost center wise whereas the indirect expenses…

Q: The production of the rest stop benches requires the following costs. For each cost, determine how…

A: Direct material is the cost of material purchased for the production process of the company. Direct…

Q: REQUIRED a) Using the high-low method, determine the fixed and variable components of the…

A: Solution:- a)Calculation of variable cost per unit and fixed costs using High low method as…

Q: Using the Hungarian method, determine the optimal assignment of the workers that will minimize the…

A: Hungarian Method is a technique in cost accounting to find the optimum solution of cost allocation…

Q: Which of the following statement is not correct? Select one: O a. FIFO method consider the beginning…

A: FIFO (First In- First out) method refers to a process in which, older units are sold or used first…

Q: Which of the following statements is true? When designing an activity-based costing system, related…

A: Activity based costing is a type or method of costing that is used for allocation of all indirect…

Q: Which of the following is NOT true about a resource cost driver under Activity based costing? a.…

A: The drivers that are used in the activity-based costing to assign the costs so that the overall cost…

Q: Which of the following will give you the most accurate allocation between a cost's fixed component…

A: Total cost consists of a fixed cost component and a variable cost component. In accounting we often…

Q: Required: -Allocate costs to products on the basis of labour hours -Over head cost rate = -…

A: Company Z has two service centers and two production centers. Now production centers have output in…

Q: Which of the following is the correct formula to compute the predetermined overhead rate? a.…

A: Predetermined overhead rate is calculated before the period begins therefore it is based on…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.