The managers at Elliot Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information: Budgeted hours of service:
If Elliot Manufacturing decides not to allocate support costs to the operating departments, the overhead allocated to each direct labour hour in the Assembly Department would be:
A) $3.20
B) $3.50
C) $12.00
D) $16.00

Question

The managers at Elliot Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information:  Budgeted hours of service: 
If Elliot Manufacturing decides not to allocate support costs to the operating departments, the overhead allocated to each direct labour hour in the Assembly Department would be:
A) $3.20 
B) $3.50 
C) $12.00 
D) $16.00

Quizplus · Accepted Answer

The Answer of The managers at Elliot Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information:  Budgeted hours of service: 
If Elliot Manufacturing decides not to allocate support costs to the operating departments, the overhead allocated to each direct labour hour in the Assembly Department would be:
A) $3.20 
B) $3.50 
C) $12.00 
D) $16.00

The Managers at Elliot Manufacturing Are Discussing Ways to Allocate