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Contact [7]
3 years ago
15

An allocation system that uses departmental overhead allocation rates is more refined than one that uses a plantwide overhead al

location rate.a) trueb) false
Business
1 answer:
UkoKoshka [18]3 years ago
6 0

Answer:

True

Explanation:

The departmental overhead allocation can be used in the case when the activity of the department is predicted also it is more refined than plant-wide as it applied for a single allocation rate. While on the other hand the departmental overhead rate is applied when there are several products that needed different process to manufacture a product

Therefore the given statement is true  

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RLW-II Enterprises estimated that indirect manufacturing costs for the year would be $60 million and that 12,000 machine hours w
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Answer: $3,150,000

Explanation:

Total cost of production will be the total sum of the material costs, labor costs and indirect costs.

Indirect Costs

It was estimated that 12,000 machine hours would be used at a cost of $60 million.

Indirect cost per machine hour is;

= 60,000,000/12,000

= $5,000 per hour

With 200 machine hours, indirect cost is;

= 200 * 5,000

= $1,000,000

Total cost of production = 1,250,000 + 900,000 + 1,000,000

= $3,150,000

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Answer:

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