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Title: Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estima Post by: jerico on Mar 13, 2015 Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
Cost Pool Overhead Costs Cost driver Activity level Supervision of direct labor $320,000 Direct labor-hours 800,000 Machine maintenance $120,000 Machine-hours 960,000 Facility rent $200,000 Square feet of area 100,000 Total overhead costs $640,000 The accounting records show the Mossman Job consumed the following resources: Cost driver Actual level Direct labor-hours 200 Machine-hours 1,600 Square feet of area 50 Which method of allocation probably best estimates actual overhead costs used? Why? A) Single direct labor-hours cost driver because it is best to allocate total costs uniformly to individual jobs. B) Single direct labor-hours cost driver because it is easiest to analyze and interpret. C) Three activity-cost drivers because they best reflect the relative consumption of resources. D) Three activity-cost drivers because product costs can be significantly cross-subsidized. Title: Re: Gregory Enterprises has identified three cost pools to allocate overhead costs. The following es Post by: cyborg on Mar 19, 2015 Content hidden
Title: Re: Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estima Post by: jerico on Mar 23, 2015 I can confidently say that it looks and sounds right lol Thank you :) Give this man a thumbs up.
Title: Re: Gregory Enterprises has identified three cost pools to allocate overhead costs. The following estima Post by: cyborg on Mar 23, 2015 Sweet, you're welcome.
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