Answer and Explanation:
The cost driver refers to the change in the activity units level with respect to the change in activity cost
There are various activities held and according to that the cost driver is also there so that it could be allocated
Just like
Activities Cost driver
1) Materials handling - Number of Requisitions
2) Machine setups - Number of Setups
3) Factory machine maintenance - Machine Hours Used
4) Factory supervision - Number of Employees
5) Quality control - Number of Inspections
Material handling should be based on allocating in the number of requisitions
And the same is applied for other activities
Answer:
Cost allocation
Explanation:
Cost allocation means the process where the identification, aggregation, and the allocating of the cost is made to the various cost objects. It plays an important role as the cost i.e. incurred for generating a particular product or rendering a service would be determined
So if the manufacturing overhead cost assigned and the other indirect cost so this we called cost allocation
Answer: periodic inventory system
Explanation:
The type of inventory system used by Badger Enterprises is the periodic inventory system. The periodic inventory system is an inventory whereby updates are usually done on periodic basis.
In the periodic inventory system, physical count of inventory is done at specific intervals. This is the method used by the company in the question.
Answer:
b. $6,240.
Explanation:
The reconciliation statement reconciles the bank statement balance to the cash book balance. The reconciled balance in the cash account is derived after considering all transactions that happened during the year that should have been recognized but were yet to.
Given the following Reconciling items;
deposits in transit, $2,600; This has been captured in the books and need not be adjusted for.
bank service charges, $140; This is yet to be recorded in the books hence it will be deducted from the cash balance.
outstanding checks, $950; This has been recognized in the books hence no further adjustments are required.
and interest credited to the bank account during the month but not recorded on the company’s books, $60.; This will be added to the cash balance
Hence reconciled balance
= $6,320 - $140 + $60
= $6,240