Matching for cost drivers List of possible choices of allocation bases: A. Numbe
ID: 2465655 • Letter: M
Question
Matching for cost drivers
List of possible choices of allocation bases: A. Number of all company employees, B. Units of production capacity, C. Square footage occupied, D. Actual production overhead.
Type of Service Department Cost to be Allocated to the Producing Divisions:
1. Unionized employee benefits for production workers
2. Cost of operating a cafeteria that services all employees
3. Total payroll department costs
4. Fixed costs necessary to maintain upkeep of the water service necessary for production
5. Cost of health services
6. Variable cost of the Utilities Department
7. Hiring costs of the Human Resources Department
8. Custodial Costs
9. Quality control department costs for finished goods
10. Total accounting and finance department costs
Type of Service Department Cost to be Allocated to the Producing Divisions:
1. Unionized employee benefits for production workers
2. Cost of operating a cafeteria that services all employees
3. Total payroll department costs
4. Fixed costs necessary to maintain upkeep of the water service necessary for production
5. Cost of health services
6. Variable cost of the Utilities Department
7. Hiring costs of the Human Resources Department
8. Custodial Costs
9. Quality control department costs for finished goods
10. Total accounting and finance department costs
Explanation / Answer
Service Department Cost Allocation Basis 1. Unionized employee benefits for production workers A. Number of all company employees 2. Cost of operating a cafeteria that services all employees A. Number of all company employees 3. Total payroll department costs A. Number of all company employees 4. Fixed costs necessary to maintain upkeep of the water service necessary for production B. Units of production capacity 5. Cost of health services A. Number of all company employees 6. Variable cost of the Utilities Department B. Units of production capacity 7. Hiring costs of the Human Resources Department A. Number of all company employees 8. Custodial Costs C. Square footage occupied 9. Quality control department costs for finished goods D. Actual production overhead 10. Total accounting and finance department costs A. Number of all company employees