A number of costs that are commonly allocated are listed in the following table followed by two alternative cost allocation bases. Cost DescriptionAllocation Base AlternativesCafeteria costsDirect labor costsNumber of employeesComputer system costsNumber of departmentsAmount of computer time usedIndirect labor costsDirect labor hoursNumber of supervisorsIndirect materialsDirect labor hoursDirect material dollarsFactory rentNumber of departmentsSquare footageFringe benefits costsNumber of departmentsNumber of employeesHousekeeping costsSquare footageNumber of employeesJoint costsNumber of joint productsSales value at split-offMaintenance costsMachine hoursNumber of employeesPersonnel department costsNumber of employeesNumber of departmentsRequired:For each cost listed, circle the cost
allocation base that you believe would be more appropriate for allocating the cost.
What will be an ideal response?
| Cost Description | Allocation Base Alternatives | |
| Cafeteria costs | Number of employees | |
| Computer system costs | Amount of computer time used | |
| Indirect labor costs | Direct labor hours | |
| Indirect materials | Direct material dollars | |
| Factory rent | Square footage | |
| Fringe benefits costs | Number of employees | |
| Housekeeping costs | Square footage | |
| Joint costs | Sales value at split-off | |
| Maintenance costs | Machine hours | |
| Personnel department costs | Number of employees | |
You might also like to view...
Interest expense on convertible bonds that are dilutive is included in the numerator of the diluted earnings per share calculation at an amount equal to interest expense times
A) the yield rate. B) the yield rate minus the stated rate. C) the tax rate. D) one minus the tax rate.
Superstores are much larger than regular supermarkets and offer a large assortment of routinely purchased food products, nonfood items, and services
Indicate whether the statement is true or false
Introduce ______________ with articles or other qualifying or quantifying words
a. countable nouns b. new ideas c. scientific terms d. local references
An effective title must:?
A) ?be less informative. B) ?not follow a specific style manual. C) ?be descriptive and comprehensive. D) ?include phrases like "A Critical Analysis of … ."