A custodial support department budgets its costs at $40,000 per month plus $12 per hour. For November,

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A custodial support department budgets its costs at $40,000 per month plus $12 per hour. For November, the custodial support department provided the following estimated and actual hours to three operating departments:
A custodial support department budgets its costs at $40,000 per

REQUIRED
A. What is the support department's allocation rate if estimated activity is the allocation base?
B. What is the support department's allocation rate if actual activity is the allocation base?
C. List one advantage and one disadvantage of each type of allocation rate.

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Related Book For  answer-question

Cost Management Measuring Monitoring And Motivating Performance

ISBN: 9781118168875

2nd Canadian Edition

Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook

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