Business

Departmental Expense Analysis Sheet: Departmentalization of factory overhead requires that each expense be charged to a department as well as…

Allocate service department costs to production departments: Instead of closing all service department overhead directly to producing departments, some overhead…

Calculate Predetermined Overhead Rate The illustration uses four producing departments here such as Cutting, Planing, Assembly, and Upholstery; and four…

ESTABLISHING DEPARTMENTAL OVERHEAD RATES: Factory overhead is usually applied on the basis of direct labor dollars or hours when one…

General Factory expenses: Certain expenses other than those discussed above come under the category General Factory expenses because they cannot…

The number and types of service departments in a company depend on its operations and the degree of expense control…

ALLOCATION OF SERVICES DEPARTMENT OVERHEAD TO BENEFITING DEPARTMENTS: The expenses of services department must ultimately be transferred to producing departments…

Apart from Expenses, Indirect Expenses such as power, light, rent, and depreciation of factory, when shared by all departments, can…

Methods of Charging Depreciation (Equipment): Depreciation is usually a cost not controllable by departmental foremen. However, their use of equipment…

Repairs and Maintenance costs: With respect to repairs and maintenance costs, it is essential (1) to establish control over the…