Which of the following is referred to as the second stage of cost allocation? O The allocation of operating department costs to goods or services produced O The allocation of direct department costs to indirect departments O The allocation of service department costs to production departments O The allocation of support department costs to goods or services produced

Q: Which of the following is the best definition of product costs? a. Product costs are those costs…

A: Cost refers to amount or value which has to be incurred in order to purchase or produce a product…

Q: Under activity-based costing, selling and administrative expenses may be allocated using which of…

A: Budgeted activity cost is the budgeted cost prepared by the company that would be incurred on…

Q: Under the reciprocal method, what would be the total Engineering department cost?

A: Calculation of total Engineering department cost : Given, Allocation of Maintenance cost to other…

Q: What is the total amount of service cost that should be allocated to the Printing department under…

A: Joint cost can be referred to as the cost which is incurred for supporting more then one 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: When assigning indirect costs to a cost object, an ideal cost-allocation base measures ________. A)…

A: A measure of input or output that defines the amount of cost to be allocated to a specific cost…

Q: Which one of the following costs can be accurately identified as forming part of a cost centre?…

A: cost center - it is a department that indirectly contributes to the organization's profits.  They…

Q: Which one of the following costs can be accurately identified as forming part of a cost centre?…

A: A cost center is a department of the company that supervises the costs of the company. Examples -…

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: Cost Accounting - Process costing The analysis of the activity in a department or cost center for a…

A: Process costing is a costing system wherein a large number of products have been produced and cost…

Q: There are two types of costs originating from the modern agency problem: direct costs and indirect…

A: Costs The expenditure incurred on that is imputable to ascertain the value of a given item is…

Q: Which of the following is the most difficult but most accurate of the commonly used methods for…

A: The cost of support departments is allocated to the production departments. Some a support…

Q: Is it true that with the use of the algebraic method, each department’s costs are set out in an…

A: Direct costs are costs that can be credited to a specific department. The company knows what…

Q: Allocate the support department costs to the production departments using the direct method.

A: Solution:- Janitorial department total cost = $310,000 Total square of production department…

Q: Is it true that when departmentalized rates is used to allocate overhead costs, all departments…

A: Departmental overhead rates area unit employed by several makers rather than employing a single,…

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

A: Equivalent units of products concept came in to existence when some units are not fully completed at…

Q: Which of the following would be the most appropriate cost driver allocating the service department…

A: Cost drivers are direct reason of cost incurred. Allocation of overhead is made on the basis of cost…

Q: Which of the following describe the reciprocal method for cost allocation: Select one: O a.…

A: Cost allocation is very important in case there are two types of departments are there. One is…

Q: What are support departments, and why are their costs allocated to other departments?  What process…

A: generally supporting departments are the departments that provide services to main departments. so…

Q: Is it true that under the sequential method of cost allocation, the final amount of pesos allocated…

A: Throughout this text, we've got emphasized value allocations solely within the in operation…

Q: Assigning indirect costs to departments is completed by ________.

A: Indirect costs are those costs that are not directly related with the production or selling. These…

Q: The order in which the costs of service departments are allocated will affect the amounts allocated…

A: There are two type of departments in the business. One is operating departments and other is Service…

Q: Under activity-based costing, second stage allocation would involve: O a. Defining activity measures…

A: Steps involved in Activity-based costing - Step 1 - identify and classify the activities involved…

Q: Total costs transferred to Department 2 is ______

A: Nico Manufacturing company uses process costing for its product "brilliant" Process costing is used…

Q: A production cost report contains which of the followingparts? (Identify all correct answers.)a.…

A: Production Cost Report: A report which gives information about the total units produced and total…

Q: Compare the total support department costs allocated to each production department under each cost…

A: Calculation of the total support department costs to the Cutting department under the direct method…

Q: In case product produced or jobs undertaken are of diverse nature, the system of costing to be used…

A: SOLUTION EXPLANATION- JOB COSTING IS AN ACCOUNTING METHOD DESIGNED TO HELP YOU TRACK THE COST OF…

Q: Help question 32

A: Answer: Option d. equivalent units.

Q: Which of the following statements best describes a profit center?a. The responsibility for combining…

A: The profit center affects the major profit decisions of the authority that includes the choosing…

Q: Requirements: A. What is the total Equivalent production for Materials? B. What is the total…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: ?Which one of the following is not correct regarding activity-based costing Activity-based costing…

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

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: 1. Using the simultaneous method to allocate the service departments' costs to the producing…

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

Q: Activity Based Costing classified costs into A. Three Groups - material, labour and overhead B.…

A: Under Activity-based costing, indirect costs are divided on the basis of the activity among the…

Q: s it true that the direct method is a method of cost allocation that charges costs of service…

A: Direct Method- Direct method refers to the method under which the cost of the service department is…

Q: the following methods of cost allocation is completed by taking the service flows to epartments only…

A: Direct method

Q: Which of the following is TRUE regarding the total service department cost allocated by the three…

A: The overheads of the servie department has to be allocated to the production department so that the…

Q: Which of the following correctly describes the term cost driver? a.The primary factor which is…

A: Cost driver is the driver cause of which the cost is incurred. On the basis of this we find the…

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: Why is the concept of Equivalent Units central in the measurement of the performance of a divisional…

A: Process costing represents the costing method that represents the different stages of the production…

Q: :Activity-based costing .uses cost pool that collects costs related to the same activity .a O…

A: Activity-based costing is a method wherein the overheads are allocated based on different cost…

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…

Q: Explain why support costs are allocated to departments.

A: Support Cost:-These are those costs that are not directly attributable to the manufacturing of the…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.