Question

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


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 for each type of allocationrate.


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  • CreatedJanuary 26, 2015
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