ZuoTi.Pro
Question

In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead. (...

In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead. (

a. True

b. False

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer----------True.

.

Activity based costing and traditional costing (departmental rates) gives different amount of overhead allocated to jobs. Activity costing is based mainly of proper allocation of overhead according the actual use by the product. Departmental overhead rate allocate overhead on a single allocation base.

Both Activity based costing and traditional costing (departmental rates) adds the same cost of Direct material and direct labor to manufacturing cost but different overhead cost.

0 0
Add a comment
Know the answer?
Add Answer to:
In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead. (...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing...

    Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information for the year is as follows: Activity Cost Driver Amount of Driver Materials handling $56,250 Number of moves 2,500 Engineering 142,500 Number of change orders 9,500 Other overhead 209,100 Direct labor hours 51,000 Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job...

  • Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing...

    Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information for the year is as follows: Activity Cost Driver Amount of Driver Materials handling $56,250 Number of moves 2,500 Engineering 142,500 Number of change orders 9,500 Other overhead 209,100 Direct labor hours 51,000 Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job...

  • Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc. uses a normal job-order costing system. Currently,...

    Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc. uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Xania’s plant manager has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Xania has the following data for its two departments for the coming year: Department A Department B Overhead costs (expected) $100,000 $61,000 Normal activity (machine hours) 18,000 14,800 Required: 1. Compute a predetermined...

  • Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc. uses a normal job-order costing system. Currently,...

    Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc. uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Xania’s plant manager has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Xania has the following data for its two departments for the coming year: Department A Department B Overhead costs (expected) $95,000 $48,000 Normal activity (machine hours) 12,000 3,800 Required: 1. Compute a predetermined...

  • 8 Overhead Applied to Jobs, Departmental Overhead Rates Watson Products Inc. uses a normal job-order costing...

    8 Overhead Applied to Jobs, Departmental Overhead Rates Watson Products Inc. uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Marlon Burke, the plant manager, has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Watson has the following data for its two departments for the coming year: Department B Department A $2,660,000 140,000 Overhead costs (estimated) Normal activity (machine hours) $924,000 84,000 Required:...

  • Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc, uses a normal job-order costing system. Currently,...

    Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc, uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Xania's plant manager has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Xania has the following data for its two departments for the coming year: Department A Department B Overhead costs (expected) Normal activity (machine hours) $75,000 14,500 $81,000 11,800 Required: 1. Compute a predetermined...

  • Dotsero Technology, Inc., has a job-order costing system. The company uses departmental predetermined overhead rates to...

    Dotsero Technology, Inc., has a job-order costing system. The company uses departmental predetermined overhead rates to apply manufacturing overhead cost to individual jobs. The predetermined overhead rate in Department A is based on machine hours, and the rate in Department B is based on direct labour hours. At the beginning of the most recent year (i.e., January 1, 2012), the company's management made the following estimates for the coming year: Department A B Machine hours 80,000 21,000 Direct labour hours...

  • Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing...

    Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information for the year is as follows: Activity Cost Driver Amount of Driver Materials handling $55,000 Number of moves 2,500 Engineering 101,500 Number of change orders 7,000 Other overhead 180,000 Direct labor hours 50,000 Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing...

  • Xania Inc. uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine...

    Xania Inc. uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Xania's plant manager has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Xania has the following data for its two departments for the coming year: Department A Department B Overhead costs (expected) $750,000   $330,000   Normal activity (machine hours)   6,000       10,000   Required: Compute a predetermined overhead rate for the plant as a whole...

  • Xania Inc. uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine...

    Xania Inc. uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Xania's plant manager has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Xania has the following data for its two departments for the coming year: Department A Department B Overhead costs (expected) $750,000   $330,000   Normal activity (machine hours)   6,000       10,000   Required: Compute a predetermined overhead rate for the plant as a whole...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT