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For Each Cost Pool Listed Select an Appropriate Allocation Base

Question 68

Essay

For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company.
Allocation bases for which the information system can provide data:
1. Number of employees per department
2. Employee wages and salaries per department
3. Production facility square footage
4. Hours of operation of each production department
5. Machine hours by department
6. Operations costs of each department
7. Hours of computer use per month per department
8. Indirect labor-hours per department
Cost pools:
For each cost pool listed select an appropriate allocation base from the list below. An allocation base may be used only once. Assume a manufacturing company. Allocation bases for which the information system can provide data: 1. Number of employees per department 2. Employee wages and salaries per department 3. Production facility square footage 4. Hours of operation of each production department 5. Machine hours by department 6. Operations costs of each department 7. Hours of computer use per month per department 8. Indirect labor-hours per department Cost pools:

Correct Answer:

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