After service department costs have been allocated,what is the final step in determining full product cost?
A)determine direct material cost
B)determine overhead application rates for revenue-producing areas
C)determine direct labor cost
D)determine total service department costs

Question

Quizplus · Accepted Answer

After service department costs have been allocated, the final step in determining full product cost is to determine overhead application rates for revenue-producing areas. This involves calculating how much overhead should be allocated to each revenue-producing department based on its use of the service department resources. Once this is complete, the total product cost can be calculated by adding together direct material, direct labor, and overhead costs.

After Service Department Costs Have Been Allocated,what Is the Final