Buckhannon Jewelry Company is in the process of selecting cost drivers that could be used as the bases for allocating various service department costs to its three production divisions: Cutting, Milling and Finishing.
Required: Select the most appropriate allocation base for each type of service department cost described in (a) through (j). Select from among the four allocation bases in the following list. In recording your answer, use the abbreviations provided in the list. Some allocation bases will be used for more than one answer.
List of Possible Choices of Allocation Bases
EMP = Number of Employees
UPC = Units of Production Capacity
SQF = Square Footage Occupied
POH = Budgeted Production Department Overhead
Type of Service Department Cost to be Allocated to the Producing Divisions

Question

Buckhannon Jewelry Company is in the process of selecting cost drivers that could be used as the bases for allocating various service department costs to its three production divisions: Cutting, Milling and Finishing. 
Required: Select the most appropriate allocation base for each type of service department cost described in (a) through (j). Select from among the four allocation bases in the following list. In recording your answer, use the abbreviations provided in the list. Some allocation bases will be used for more than one answer.
List of Possible Choices of Allocation Bases
EMP = Number of Employees
UPC = Units of Production Capacity
SQF = Square Footage Occupied
POH = Budgeted Production Department Overhead
Type of Service Department Cost to be Allocated to the Producing Divisions

Quizplus · Accepted Answer

The Answer of Buckhannon Jewelry Company is in the process of selecting cost drivers that could be used as the bases for allocating various service department costs to its three production divisions: Cutting, Milling and Finishing. 
Required: Select the most appropriate allocation base for each type of service department cost described in (a) through (j). Select from among the four allocation bases in the following list. In recording your answer, use the abbreviations provided in the list. Some allocation bases will be used for more than one answer.
List of Possible Choices of Allocation Bases
EMP = Number of Employees
UPC = Units of Production Capacity
SQF = Square Footage Occupied
POH = Budgeted Production Department Overhead
Type of Service Department Cost to be Allocated to the Producing Divisions

Buckhannon Jewelry Company Is in the Process of Selecting Cost