Question

When a single plantwide overhead rate is used to apply overhead to products, support department costs are

a.impossible to trace. b.allocated with multiple drivers using a single rate. c.nonexistent, because a single plantwide rate cannot be used when a company has support departments. d.combined with all other overhead costs.

Which of the following statements regarding direct costs is true?

a.All direct costs of a support department are accumulated in the department, and general factory overhead is never assigned to the department.

b.All direct costs of a support department are accumulated in the department, and some general factory overhead may be assigned to the department.

c.All direct costs of a support department are assigned by a driver to the department, and some general factory overhead may be directly accumulated in the department.

d.None of these choices are correct.

Which of the following is not a support department?

a.The department that produces pizza boxes in a paper container manufacturing facility

b.The Machine Repair Department in a picture frame manufacturing facility

c.The Machine Maintenance Department that provides routine maintenance in a diesel engine manufacturing facility

d.The Janitorial Department in a plastic salad container manufacturing facility

Answer 1

1.
Answer is d.combined with all other overhead costs.
Since single plantwide rate is used, all overhead costs are combined

2.
Answer is b.All direct costs of a support department are accumulated in the department, and some general factory overhead may be assigned to the department.

3.
Answer is a.The department that produces pizza boxes in a paper container manufacturing facility