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

According to the features and characteristics costing method, overhead costs are allocated based on the highest individual cycle time in the bottleneck department. In this case, Product B has the highest individual cycle time in molding, which is the bottleneck department. Therefore, more overhead costs would be allocated to Product B.

Figure 15-4 -Refer to Figure 15-4. Under the Features and Characteristics Costing