(Solution) 16 - Which Of The Following Characteristics Is A Consequence Of The Implementation Of A Plant-wide Allocation Rate? | Snapessays.com


(Solution) 16 - Which of the following characteristics is a consequence of the implementation of a plant-wide allocation rate?


please help the attached questions  Can I get answers in less than one hour Thank you16 -

 

Which of the following characteristics is a consequence of the implementation of a

 

plant-wide allocation rate?

 

Allocations are first conducted among departments, and then aggregated for the plant as a

 

whole.

 

The uniqueness of individual departments is not reflected in the cost numbers.

 

Downstream costs are not measured at all.

 

Managers have absolutely no incentive to control costs.

 

50 -

 

The management of Mouser Manufacturing is analyzing variable

 

overhead variances for the Fscal period just ended. The ±exible budget

 

called for $352,000 in variable overhead but actual variable overhead was

 

$400,000. In computing the overhead variances, Mouser's management

 

discovered that it had used 80,000 pounds of direct material, rather than the

 

budgeted amount of 88,000 pounds. (Pounds of direct material is the single

 

overhead driver of variable overhead). The standard variable overhead rate

 

per pound of direct material is $4.00. What is Mouser's variable overhead

 

e²ciency variance?

 

$32,000

 

(³)

 

$16,000

 

(³)

 

$24,000

 

(U)

 

$40,000

 

(U)

 


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This question was answered on: May 23, 2022

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