Chapter 9, Problem 2QS

Basis for cost allocation C1

In each blank next the following types of indirect expenses and service department expenses, place the identifying letter of the best allocation basis to use to distribute it to the departments indicated.
_______ 1. Computer service expenses of production
A. Relative for operating departments.
Scheduling for operating departments.
_______ 2.General office departments.expenses of the operating departments.
B. Proportion of total time in each department for maintenance.
______3.Maintenance department expenses of the operating departments.
C.Proportion of floor space occupied by each department
_____4. Electric utility expenses of all departments.
D. Proportion of total processing time for each operating department.