8A & C

Chapter 5 Study Guide - Support Department and Joint Cost Allocation costs by the 7 5. allocate support department San What is the correct sequence of events for allocating support department costs to products regardless of the method (single plantwide rate, multiple production department rates, or activity-based costing) chosen for the allocation process? 1. directie Trace and distribute overhead COSS to Support & production departments. 2. Select a cost driver for each department 3.determine the usage of the support department cost driver by each! department 4. determine the % usage of support department cost drivers by each! Below are descriptions of terms used when referring to manufacturing costs and the transfer of these costs to de part departments and products. Fill in the blank using the terms distributing, allocating, or applying a) Transferring overhead costs to support and production departments is referred to as _overhead costs. b) Transferring costs to products is referred to as allocating 01 costs to products. c) Transferring costs among departments is referred to as costs. " Using the direct method, Samantha Company allocates Maintenance Department costs based on square footage + serviced, and it services the Cutting and Assembly departments. It allocates Cafeteria Department costs based on the number of employees served in the Cutting and Assembly departments, It has the following information about its two service departments and two production departments, Cutting