Cost allocation of Overheads Cost allocation of Overheads takes place on basis of cost objects identified to enable cost allocation. Overheads refer to costs of operations and comprise of direct costs such as manufacturing expenses and of indirect costs in the form of selling and administrative expenses. Examples of Overheads are Salaries of administrative staff, rent of office, advertising expenses etc. The costs of the operations are allocated on basis of cost objects. Cost objects are units of cost allocation identified for overhead allocations and cost estimations. Examples of Cost objects for Overhead allocation are Number of units produced, number of labor hours worked etc. To Determine: Factor / Base to assign overhead costs apart from percentage of labor cost. Solution: Another factor that may reasonably be used to assign overhead costs, apart from percentage of labor cost is Machine Hours consumed by each process for the production of goods manufactured.

Question

Want to see the full answer?

Answer 1

Question

Chapter 19, Problem 2DQ

To determine

Introduction:

Cost allocation of Overheads

Cost allocation of Overheads takes place on basis of cost objects identified to enable cost allocation. Overheads refer to costs of operations and comprise of direct costs such as manufacturing expenses and of indirect costs in the form of selling and administrative expenses.

Examples of Overheads are Salaries of administrative staff, rent of office, advertising expenses etc. The costs of the operations are allocated on basis of cost objects. Cost objects are units of cost allocation identified for overhead allocations and cost estimations.

Examples of Cost objects for Overhead allocation are Number of units produced, number of labor hours worked etc.

To Determine:

Factor / Base to assign overhead costs apart from percentage of labor cost.

Solution:

Another factor that may reasonably be used to assign overhead costs, apart from percentage of labor cost is Machine Hours consumed by each process for the production of goods manufactured.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

what is the return on assets ROA)? provide correct answer

Harper Industries sells 32,000 units at $27 per unit. Variable costs are $21.50 per unit, and fixed costs are $52,800. a. Determine the contribution margin ratio. b. Determine the unit contribution margin. c. Determine the income from operations.

Determine the direct materials and conversion costs per unit

Answer 2

Question

Chapter 19, Problem 2DQ

To determine

Introduction:

Cost allocation of Overheads

Cost allocation of Overheads takes place on basis of cost objects identified to enable cost allocation. Overheads refer to costs of operations and comprise of direct costs such as manufacturing expenses and of indirect costs in the form of selling and administrative expenses.

Examples of Overheads are Salaries of administrative staff, rent of office, advertising expenses etc. The costs of the operations are allocated on basis of cost objects. Cost objects are units of cost allocation identified for overhead allocations and cost estimations.

Examples of Cost objects for Overhead allocation are Number of units produced, number of labor hours worked etc.

To Determine:

Factor / Base to assign overhead costs apart from percentage of labor cost.

Solution:

Another factor that may reasonably be used to assign overhead costs, apart from percentage of labor cost is Machine Hours consumed by each process for the production of goods manufactured.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 19, Problem 2DQ

To determine

Introduction:

Cost allocation of Overheads

Cost allocation of Overheads takes place on basis of cost objects identified to enable cost allocation. Overheads refer to costs of operations and comprise of direct costs such as manufacturing expenses and of indirect costs in the form of selling and administrative expenses.

Examples of Overheads are Salaries of administrative staff, rent of office, advertising expenses etc. The costs of the operations are allocated on basis of cost objects. Cost objects are units of cost allocation identified for overhead allocations and cost estimations.

Examples of Cost objects for Overhead allocation are Number of units produced, number of labor hours worked etc.

To Determine:

Factor / Base to assign overhead costs apart from percentage of labor cost.

Solution:

Another factor that may reasonably be used to assign overhead costs, apart from percentage of labor cost is Machine Hours consumed by each process for the production of goods manufactured.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 19, Problem 2DQ

To determine

Introduction:

Cost allocation of Overheads

Cost allocation of Overheads takes place on basis of cost objects identified to enable cost allocation. Overheads refer to costs of operations and comprise of direct costs such as manufacturing expenses and of indirect costs in the form of selling and administrative expenses.

Examples of Overheads are Salaries of administrative staff, rent of office, advertising expenses etc. The costs of the operations are allocated on basis of cost objects. Cost objects are units of cost allocation identified for overhead allocations and cost estimations.

Examples of Cost objects for Overhead allocation are Number of units produced, number of labor hours worked etc.

To Determine:

Factor / Base to assign overhead costs apart from percentage of labor cost.

Solution:

Another factor that may reasonably be used to assign overhead costs, apart from percentage of labor cost is Machine Hours consumed by each process for the production of goods manufactured.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 19, Problem 2DQ

To determine

Introduction:

Cost allocation of Overheads

Cost allocation of Overheads takes place on basis of cost objects identified to enable cost allocation. Overheads refer to costs of operations and comprise of direct costs such as manufacturing expenses and of indirect costs in the form of selling and administrative expenses.

Examples of Overheads are Salaries of administrative staff, rent of office, advertising expenses etc. The costs of the operations are allocated on basis of cost objects. Cost objects are units of cost allocation identified for overhead allocations and cost estimations.

Examples of Cost objects for Overhead allocation are Number of units produced, number of labor hours worked etc.

To Determine:

Factor / Base to assign overhead costs apart from percentage of labor cost.

Solution:

Another factor that may reasonably be used to assign overhead costs, apart from percentage of labor cost is Machine Hours consumed by each process for the production of goods manufactured.

Answer 6

Chapter 19, Problem 2DQ

To determine

Introduction:

Cost allocation of Overheads

Cost allocation of Overheads takes place on basis of cost objects identified to enable cost allocation. Overheads refer to costs of operations and comprise of direct costs such as manufacturing expenses and of indirect costs in the form of selling and administrative expenses.

Examples of Overheads are Salaries of administrative staff, rent of office, advertising expenses etc. The costs of the operations are allocated on basis of cost objects. Cost objects are units of cost allocation identified for overhead allocations and cost estimations.

Examples of Cost objects for Overhead allocation are Number of units produced, number of labor hours worked etc.

To Determine:

Factor / Base to assign overhead costs apart from percentage of labor cost.

Solution:

Another factor that may reasonably be used to assign overhead costs, apart from percentage of labor cost is Machine Hours consumed by each process for the production of goods manufactured.

Answer 7

Chapter 19, Problem 2DQ

To determine

Introduction:

Cost allocation of Overheads

Cost allocation of Overheads takes place on basis of cost objects identified to enable cost allocation. Overheads refer to costs of operations and comprise of direct costs such as manufacturing expenses and of indirect costs in the form of selling and administrative expenses.

Examples of Overheads are Salaries of administrative staff, rent of office, advertising expenses etc. The costs of the operations are allocated on basis of cost objects. Cost objects are units of cost allocation identified for overhead allocations and cost estimations.

Examples of Cost objects for Overhead allocation are Number of units produced, number of labor hours worked etc.

To Determine:

Factor / Base to assign overhead costs apart from percentage of labor cost.

Solution:

Another factor that may reasonably be used to assign overhead costs, apart from percentage of labor cost is Machine Hours consumed by each process for the production of goods manufactured.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 19 - Prob. 1DQ Ch. 19 - Prob. 2DQ Ch. 19 - Prob. 3DQ Ch. 19 - Prob. 4DQ Ch. 19 - Prob. 5DQ Ch. 19 - Prob. 6DQ Ch. 19 - Prob. 7DQ Ch. 19 - Prob. 8DQ Ch. 19 - Prob. 9DQ Ch. 19 - Prob. 10DQ

Concept explainers

Videos

Want to see the full answer?

Chapter 19 Solutions