It is important that a standard rate rather than actual expenses be used to charge service department costs to producing departments so that:
a. production department managers know the amount of usage at the beginning of the year.
b. extra costs resulting from inefficient operations in service departments cannot be passed on to the production departments.
c. service department managers don't need to worry about meeting their budgets.
d. extra costs resulting from inefficient operations in production departments can not be passed on to the service departments.
b
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Answer the following statement true (T) or false (F)
Which of the following is NOT a publicly available means of fine tuning an internet search?
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The Dawson Company manufactures small lamps and desk lamps. The following shows the activities per product and the total overhead information:
Setups Inspections Assembly (dlh) Small Lamps - 2,700 units 3,300 9,000 40,000 Desk Lamps - 8,300 units 6,600 15,000 40,000 Activity Pool Activity Base Budgeted Amount Setups 9,900 $83,160 Inspections 24,000 $146,400 Assembly (dlh) 70,000 $315,000 Calculate the overhead per unit to be charged to small lamps. a. $48.64 b. $126.45 c. $175.09 d. $97.27
A cost pool is a collection of costs that are related to the same or similar activity.
Answer the following statement true (T) or false (F)