Figure 15-4 Refer to Figure 15-4. Under the features and characteristics costing method, which product would have more overhead costs allocated?
A) Product A because it has the highest total cycle time
B) Product B because it has the highest individual cycle time in molding, the bottleneck department
C) Product A because the first two cycles are bottlenecks
D) Unable to determine from information given

Question

Figure 15-4   Refer to Figure 15-4. Under the features and characteristics costing method, which product would have more overhead costs allocated?
A) Product A because it has the highest total cycle time 
B) Product B because it has the highest individual cycle time in molding, the bottleneck department 
C) Product A because the first two cycles are bottlenecks 
D) Unable to determine from information given

Quizplus · Accepted Answer

Under the features and characteristics costing method, the overhead costs are allocated based on the product's highest individual cycle time in the bottleneck department. In this case, Product B has the highest individual cycle time in the molding department, which is identified as the bottleneck department. Therefore, more overhead costs will be allocated to Product B.