{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 4 outline - Chapter 4 1 Departmental OH rates a...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 4: 1. Departmental OH rates a. Four basic steps 1. Estimate the total manufacturing overhead (MOH) costs that will be incurred in each department in the coming year: departmental overhead cost pools. 2. Select an allocation base for each department and estimate the total amount that will be used during the year. 3. Calculate departmental overhead rates using the information estimated in Steps 1 and 2: Department overhead rate = Total estimated department overhead cost pool / Total estimated amount of the department allocation base 4. Allocate some MOH from each department to the individual jobs that use those departments. MOH allocated to job = Departmental overhead rate × Actual amount of departmental allocation base used by job 2. ABC a. Four basic steps 1. Identify primary activities and then estimate the total MOH costs associated with each activity: activity cost pools. 2. Select an allocation base for each activity and estimate the total amount that will be used during the year.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}