4 For the following cost pool: Energy costs. Select an appropriate allocation base from the list below if the overall cost object is to assign costs to production departments. Assume a manufacturing company. Select one: a. Number of employees per department. b. Hours of operation by production department. c. Machine hours by department d. Hours of computer use per month per department.

4 For the following cost pool: Energy costs. Select an appropriate allocation base from the list below if the overall cost object is to assign costs to production departments. Assume a manufacturing company. Select one: a. Number of employees per department. b. Hours of operation by production department. c. Machine hours by department d. Hours of computer use per month per department.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 11EA: Potterii sells its products to large box stores and recently added a retail line of products to sell...

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Potterii sells its products to large box stores and recently added a retail line of products to sell directly to consumers. These estimates are to be used in determining the overhead allocation rate for ABC: What would be the predetermined rate for each cost pool?
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Required: 1. Assume the cost object is units of production: a. What is the total direct manufacturing cost incurred to make 24,500 units? b. What is the total indirect manufacturing cost incurred to make 24,500 units? 2. Assume the cost object is the Manufacturing Department and that its total output is 24,500 units. a. How much total manufacturing cost is directly traceable to the Manufacturing Department? b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department? 3. Assume the cost object is the company’s various sales representatives. Furthermore, assume that the company spent $90,650 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives’ compensation. a. When the company sells 24,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives? b. When…