Cost Accounting-Gillespie

Cost Accounting-Gillespie - OH = 0/40 = 0 DL = 800/40 = $20...

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Chapter 2 Cost: Direct Cost Cost Tracing Cost Drive Cost Object Indirect Cost Cost Allocation Assumed Cost Driver Cost Object -Treating costs as direct costs gives us better information. Direct/Indirect 1.) Level of significance (size of cost) *Want large costs to be treated as direct cost for more information. 2.) Ease of Measurement *Physical plant *Information system Week 1: (1 unit per hour) 40($20) = 800 DL
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Unformatted text preview: OH = 0/40 = 0 DL = 800/40 = $20 Week 2: 36($20) = 720 DL OH = 80/36 = $2.22 DL = 720/36 = $20 4($20) = 80 OH Total = $22.22 Week 3: 44($20) = 880 DL OH = 40/44 = $0.89 DL = 880/44 = $20 4($10) = 40 OH Total = $20.89 Week 4: 40($20) = 800 DL = 800/20 = $20 First 40 4($30) = 120 DL = 120/4 = $30 Last 4 Supply-Chain Materials Supply Manufacturing Wholesaler Retailer Consumer...
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