14 Which of the following is not one of the methods used forapplying overhead?u c.activity-based costing application method15 Using the direct method, Pone Hill Company allocatesJanitorial Department costs based on square footage serviced.It allocates Cafeteria Department costs based on the numberof employees served. It has the following information aboutits two service departments and two production departments,Cutting and Assembly:If the Cafeteria Department incurs costs of $500,000, howmuch of that cost is allocated to the Assembly Department? 16Which of the following is the easiest but least accurate of thecommonly used methods for allocating support departmentcosts to production departments? Newly uploaded documentsAnswer and explanation: Managerial accounting, another branch of accounting, is different from regular financial accounting in various aspects. Unlike the latter, it does not pour its attention into preparing and presenting the financial statements, rather it focuses on preparing certain statements that describe the working and performance of the entity. It is primarily concerned with the affairs of the company within the organization. Results of managerial accounting influence significant decisions of the management. Excel is one of the most widely used tools in the field of accounting. It plays a major role in managerial accounting as well. The essential components of managerial accounting such as profit and loss, cash flows, payments received and made, manufacturing cost, etc. can be computed using charts and reports in excel in a convenient manner. The presentation of such data gets simplified, user-friendly and reliable using excel tools. This can be explained using the following example:
Asked by josecaraballo3 on coursehero.com Single Plantwide and Multiple Production Department Factory Overhead Rate Methods and Product Cost Distortion The management of Nova Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Nova: Fabrication Department factory overhead. $481,000 Assembly Department factory overhead 185,000 Total $666,000 Direct labor hours were estimated as follows: Fabrication Department 3,700hours Assembly Department 3,700 Total 7,400hours In addition, the direct labor hours (dlh) used to produce a unit of each product in each department were determined from engineering records, as follows: Production Departments Gasoline Engine Diesel Engine Fabrication Department 1.20dlh 2.80dlh Assembly Department 2.80 1 .20 Direct labor hours per unit 4.00dlh 4.00dlh a. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the single plantwide factory overhead rate method, using direct labor hours as the activity base. Gasoline engine_________________per unit Diesel engine____________________per unit b. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the multiple production department factory overhead rate method, using direct labor hours as the activity base for each department. Gasoline engine_____________ per unit Diesel engine_______________ per unit c. Recommend to management a product costing approach, based on your analyses in (a) and (b). Management should select the (multiple department/single plantwide) factory overhead rate method of allocating overhead costs. The(multiple department/singleplantwide) factory overhead rate method indicates that both products have the same factory overhead per unit. Each product uses the direct labor hours(equally/differently). . Thus, the(multiple department/single plantwide) rate method avoids the cost distortions by accounting for the overhead( plantwide/ in each production department separately). Answered by Sajie on coursehero.com um dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum v  Unlock access to this and over Have an account? Log In Step-by-step explanationum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor |
A key aspect to the multiple production department rate method for overhead application is
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