Answer and Explanation:
The preparation of the plant assets is shown below:-
Plant Assets
Partial Balance Sheet
December 31, 2013
Land $4,897,200
Buildings $26,630,000
Less : Accumulated Depreciation $13,904,550 $12,725,450
Equipment $46,406,800
Less : Accumulated Depreciation $9,182,250 $37,224,550
Total Plant Assets $54,847,200
Note:- Here, Building Details for 2023 are not provided, it will be included in the accumulated depreciation above if available
Answer: The options are given below:
A. Use of a single predetermined overhead rate.
B. Use of direct labor hours or direct labor cost to assign overhead.
C. Assumption of correlation between direct labor and incurrence of overhead cost.
D. Use of multiple cost drivers to allocate overhead.
The correct option is D.
Explanation: The traditional costing system refers to the allocation of factory overhead to products, and this is based on the total amount of production resources that have been consumed.
When using the traditional costing system, the overhead is usually applied based on either the total number of direct labor hours consumed or the total number of machine hours used.
The traditional costing systems treat overhead costs as a single pool of indirect costs. Traditional costing is optimal when indirect costs are low when in comparison with direct costs.
Usually, you have to wait 6 months to get your license after you get a permit; if you get your permit in December you can get your license in June.