The cost object of the plantwide overhead rate method is:Multiple ChoiceOThe production activities of the company.The unit of product.The time period.The production departments of the company.Manufacturing cost pools. Galla Incorporated needs to determine a price for a new product. Galla desires a 25% markup on the total cost of theproduct. Galla expects to sell 5,000 units. Additional information is as follows:Fixed Costs (total)Variable Costs per UnitDirect materialsDirect labor$ 21 Overhead22 General and administrative2026OverheadGeneral and administrativeUsing the total cost method what price should Galla charge?$ 45,00018,000

An overhead rate, also known as an overhead absorption rate or predetermined overhead rate, is a…

Answered: The cost object of the plantwide…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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why are departmental overhead rates more accurate for product costing than a plantwide overhead rate?
Asap Which of the following is not a factory overhead allocation method? a.activity-based costingb.factory costingc.single plantwide rated.multiple production department rates
2. Which of the following is a possible cost driver that may be used in calculating a company's predetermined overhead rate? A) Direct labour hours B) Direct labour dollars C) Machine hours D) All of the above
24: Seat Belt Inc., produces three sizes of seat belts: small, medium, and large. A seat belt pattern is first stenciled onto fabric in the Pattern Department. The stenciled patterns are then sent to the Cut and Sew Department, where the seat belt is cut and sewed together. Seat Belt Inc. uses the multiple production department factory overhead rate method of allocating factory overhead costs. Its factory overhead costs were budgeted as follows: Overhead Dollars Direct Labor Hours Pattern Department: Cut and Sew Department Overhead: 40,000 dh 60,000 dlb $300,000 $600,000 $900,000 Totals: 100,000 The Company decides to use the Multiple Department Overhead method, and Direct Labor Hours are used to allocate the overhead. We know the following for each type of seatbelt: Small Medium 1.0 dlh 1.5 dlb 2.5 dlh Large 2.0 dlh 3.0 dlb 5.0 dla Pattern Department: Cut and Sew Department: 1.5 dla 2.5 dlh 4.0 dlk Total Per Unit Part I: Calculate the Departmental Factory Overhead Rate for each…
E
How does the activity-based costing method differ from the single plantwide and the multiple production department FOH rate methods?
Is Manufacturing Overhead cost allocated to jobs by precisely identifying the overhead cost of each job or by an estimation? Explain.
Which method of determining operating income is used internally for decision making and considers fixed factory overhead a period expense?
Under what conditions might a company use activity-based costing to allocate factory overhead to products?

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The cost object of the plantwide overhead rate method is: Multiple Choice The production activities of the company. The unit of product. The time period.