Given for firm XYZ, the plantwide rate is $195 per machine hour. If firm XYZ follows departmental allocation method, department 1's allocation rate is $190 per machine hour, department 2's allocation rate is $280 per machine hour, and departmental 3's allocation rate is $180 per machine hour. Which department(s) will be overcosted if costs has been allocated based on the plantwide rate? Question 17 options: 1 Department 1 and department 3. 2 Department 2, and department 3. 3 Department 1, department 2, and department 3. 4 Department 2 only.

Given for firm XYZ, the plantwide rate is $195 per machine hour. If firm XYZ follows departmental allocation method, department 1's allocation rate is $190 per machine hour, department 2's allocation rate is $280 per machine hour, and departmental 3's allocation rate is $180 per machine hour. Which department(s) will be overcosted if costs has been allocated based on the plantwide rate? Question 17 options: 1 Department 1 and department 3. 2 Department 2, and department 3. 3 Department 1, department 2, and department 3. 4 Department 2 only.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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