My House / Your House Direct Materials Direct Labor Overhead* as House 1 $140,000 210,000 ?...
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My House / Your House Direct Materials Direct Labor Overhead* as House 1 $140,000 210,000 ? House 2 $70,000 130,000 ? House 3 $90,000 60,000 ? *Total indirect costs such as supervisory salaries and indirect materials amount to $84,000. My house is house number one. I believe distributing the overhead costs equally among the three houses is a fair way to allocate them. My specific recommendation is: $84,000 overhead / 3 houses = $28,000 per house. Your house is house number three. Do you agree with this assignment of cost? Submit an initial post by Friday explaining why or why not. Include your own recommendation to allocate the $84,000 of overhead costs. Based on your suggestion indicate the amount of overhead costs to be assigned to each of the three houses. Each member of the group must come up with a different method to allocate costs...so it pays to post early this week. (You will only be able to see the posts of members of your group). My House / Your House Direct Materials Direct Labor Overhead* as House 1 $140,000 210,000 ? House 2 $70,000 130,000 ? House 3 $90,000 60,000 ? *Total indirect costs such as supervisory salaries and indirect materials amount to $84,000. My house is house number one. I believe distributing the overhead costs equally among the three houses is a fair way to allocate them. My specific recommendation is: $84,000 overhead / 3 houses = $28,000 per house. Your house is house number three. Do you agree with this assignment of cost? Submit an initial post by Friday explaining why or why not. Include your own recommendation to allocate the $84,000 of overhead costs. Based on your suggestion indicate the amount of overhead costs to be assigned to each of the three houses. Each member of the group must come up with a different method to allocate costs...so it pays to post early this week. (You will only be able to see the posts of members of your group).
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In the scenario presented overhead costs need to be allocated to three different houses based on direct materials and direct labor costs While the ini... View the full answer
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
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