Question: Which statement is false? Using a single plant-wide allocation rate is the simplest method of allocating overhead costs. An allocation system that uses departmental allocation

Which statement is false? Using a single plant-wide allocation rate is the simplest method of allocating overhead costs. An allocation system that uses departmental allocation rates is more refined than one that uses a plant-wide allocation rate. Allocation focuses on indirect costs. The predetermined overhead allocation rate is based on actual costs. Compute it uses activity-based costing. Two of Compute it's production activities are kitting (assembling the raw materials needed for each computer in one kit) and boxing the completed products for shipment to customers. Assume that Compute IT spends $12,000,000 per month on kitting and $22,000,000 per month on boxing. Compute it allocates the following: Kitting costs based on the number of parts used in the computer Boxing costs based on the cubic feet of space the computer requires Suppose Compute It estimates it will use 400,000,000 parts per month and ship products with a total volume of 20,000,000 cubic feet. Assume that each desktop computer requires 125 parts and has a volume of 10 cubic feet. What are the predetermined overhead allocation rates? What are the kitting and boxing costs assigned to one desktop computer
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