Question: Selecting Cost Allocation Bases and Direct Method Allocations Seattle Compary has three producing departments ( P 1 , P 2 , and P 3 )
Selecting Cost Allocation Bases and Direct Method Allocations
Seattle Compary has three producing departments P P and P for which direct department costs are accurnulated. In January, the following indirect costs of
operasion were incurred.
The following addicional data have been collected for the three producing departments:
Required
a Determine the common basis for allocation for each of the four cost pools identifed below, in addition, calculate the total cost in each of the four cost pools
for January.
Determine the amounts allocated to the three producing departments using the allocation bases used in requirement a
c How much indirect cost would be allocated to each producing department if Seatle Company were using a plantwide rate based on direct labor hours?
Note: Round your final answers below to the nearest whole dollar.
Note: Do not round the rates used in your caiculations.
d How much indirect cost would be allocated to each producing department if Seatte Compary were using a plantwide rate based on machine hours?
Note: Round your final arswers below to the nearest whole dollar.
Note: Do not round the rates used in your calculations.
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