Why is it better to use separate overhead rates? * A. Some departments are labor-intensive, some are machine-intensive. B. Labor rates vary considerably among departments. C. The resulting overhead rates are all about the same. D. All jobs require about the same percentage of time in all departments.

Q: The Fleming Company of Anguilla (FCA) designs and produces automotive parts. In 2019, actual…

A: Cost Accounting: Cost accounting is characterized as "an efficient arrangement of strategies for…

Q: Vhich of the following statements Is true with regard to activity-based costing? Multiple Cholce…

A: Activity Cost: It is a cost-effective method that identifies the activities in an organization and…

Q: Activity-based costing (ABC) O uses a single pre-determined overhead rate. O is less complex than a…

A: Activity based costing means where the product is valued on the basis of actual direct material ,…

Q: Why would someone choose the multiple production department FOH rate method when it is more…

A: This means that although calculating and managing the multiple production department rate method may…

Q: s compared to a high-volume product, a low-volume product a. usually requires less special handling.…

A: High volume products should be considered more essential as the volume is higher so immediate…

Q: A company may use multiple overhead rates because some departments are labor intensive whereas other…

A: Yes, that's correct. In some cases, a single overhead rate may not accurately capture the indirect…

Q: Activity-based costing uses departments overhead rate to assign overhead .a O provides the same…

A: Activity based costing system is a costing system which says that all indirect costs or overheads…

Q: am. 122.

A: The question is asking about the potential disadvantages of using departmental and plantwide…

Q: The use of a plantwide manufacturing overhead rate implies that the activities that cause overhead…

A: The Answer

Q: Assigning manufacturing overhead to product is complicated because it is an indirect cost many…

A: Manufacturing overhead assigning done for fixed manufacturing overheads. These expenses are also…

Q: A company uses the repeated distribution method to reapportion service department costs. The use of…

A: Repeated distribution method is a cost accounting technique in which costs of each service…

Q: 6. The cost unit overhead absorption rate can only be used if the business has one standard cost…

A: A method of allocating overhead and indirect expenses to goods and services is called activity-based…

Q: there are many differences and similarities between the two costing systems. I think one of the key…

A: Job & Process Costing: Costs attached to an individual job or order are calculated in job…

Q: A stapler manufacturer uses a single plantwide predetermined overhead allocation rate to allocate…

A: Step 1: Overhead cost is the cost spent by the business over and above the labor cost. It can be…

Q: Which of the following is not a reason to allocate overhead? Some overhead costs are seasonal and…

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A: Return on equity refers to the form of measuring the profitability of a business in relation to the…

Q: Activity-based costing: O a. None of the given answer. O b. typically applies overhead costs using…

A: Costing is described as a process in which the costs are assigned to each element of the…

Q: Samsung has many departments. How is a department’s contribution to overhead measured?

A: Overhead: It means the cost and expenses incurred by a company such as lighting, equipment's etc.

Q: Salary of the department manager is considered as: Variable cost Fixed cost Mixed cost Step cost

A: When calculating the entire cost of manufacturing, cost accounting includes both fixed and variable…

Q: Please explain thoroughly with examples. Which statement(s) is True/False and why? If none are true,…

A: Cost accounting is the method which followed by a manufacturing business in order to estimate the…

Q: Multiple or departmental overhead rates are considered preferable to a single plantwide overhead…

A: The objective of the question is to identify the scenario in which multiple or departmental overhead…

Q: Which of the following statements is not correct concerning multiple ?overhead rate systems A…

A: The multiple overhead rate system is the one where different departments have their own rates of…

Q: Group of answer choices remain constant and simply be spread

A: Activity based costing refers to the concept of assigning the desired direct as well as indirect…

Q: If the activities that generate overhead costs vary between departments and products, adopting a…

A: The Answer

Q: Why do departmental overhead rates sometimes result in inaccurate product costs?

A:

Q: Most companies using a process costing systems have to calculate more than one EUP. Why? How many do…

A: Equivalents units for production (EUP): Equivalents units are a measure of the work done during an…

Q: One of the disadvantages of the departmental and the plantwide overhead rate methods is that OA…

A: An overhead rate method is a cost accounting technique used by businesses to allocate and apply…

Q: Activity-based costing: O a. may not assign all manufacturing overhead costs to products. O b. None…

A: Activity based costing is a method of assigning indirect costs or overhead costs to products and…

Q: A volume-based rate is an appropriate overhead application base when:     a. Direct material…

A: Overhead is the amount of expense which is incurred to make the products. It is the part of cost of…

Q: Departmental overhead rates applied based on a volume measure such as direct labour-hours or…

A: Overheads are the indirect costs of manufacturing the product like indirect material costs, indirect…

Q: Accounting Direct labor or machine hours may not be the appropriate cost driver for overhead in all…

A: Activity based costing is the method used by the entities because it helps in reducing the…

Q: company decide to use departmental overhead rates instead of a plantwide overhead rate?

A: Plantwide Overhead Rate: It is used to allocate overhead costs across all departments or production…

Q: Assigning manufacturing overhead to a specific job is complicated by all of the following except:

A: Assigning manufacturing overhead to a specific job is complicated by all of the factors listed in…

Q: Which of the following is false? Multiple Cholce Overhead costing accuracy is Improved by the use of…

A: A departmental rate of overhead is a charge that is based on the units of production made by various…

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.