Figure 15-4
-Refer to Figure 15-4.Under the features and characteristics costing method, which product would have more overhead costs allocated?

Question

Figure 15-4   
-Refer to Figure 15-4.Under the features and characteristics costing method, which product would have more overhead costs allocated?

Quizplus · Accepted Answer

Under the features and characteristics costing method, the overhead costs are allocated based on the amount of time spent by each product in the bottleneck department. In this case, the molding department is the bottleneck department, and Product B has the highest individual cycle time in this department, therefore, it would have more overhead costs allocated to it. The total cycle time of a product is not a determining factor in the features and characteristics costing method. The answer cannot be determined by looking at the bottlenecks of the first two cycles as they may not be the bottleneck for the entire production process.