Which of the following should be used to allocate the cost of the purchasing department? a.Material...
Which of the following should be used to allocate the cost of the purchasing department?
a.Material costs
b.Number of inspections
c.Number of engineering changes
d.Number of purchase orders
Homework Answers
Answer
--Correct Answer = Option 'D' No of purchase orders can be a best 'driver' to allocate the cost of the Purchasing department.
--The product or job should get allocated by the Purchasing department overhead cost on the basis of no of purchase orders made for that product or job.
--No of inspections should be used for inspection cost while engineering cost should be allocated based on no of engineering changes.
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Which of the following should be used to allocate the cost of
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year and has si n ce 20 points) The would how to Panchasing Department which and meesch working h ow is the Pag during the year was follows Activity Courier TTOO reports for 550.000 Sed Contacting supplies SO During the year, 1.500 purchase orders and by the purchasing materials were received and phone calls were made to supplies 30 perceiving reports and 11 phone calls to suppliers Product A manufacturing proc. mine the amo using de Product A 200 2...
Advertising department expenses of $26,700 and purchasing department expenses of $46,700 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders respectively, Information about the allocation bases for the three operating departments follows Department Books Magazines Newspapers Sales $ 180.400 123,000 106.600 Purchase Orders 1.290 690 1.020 Total $410,000 3,000 Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments (Amounts to...
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