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For Each Cost Pool Listed Below,select an Appropriate Allocation Base

Question 36

Essay

For each cost pool listed below,select an appropriate allocation base.An allocation base may be used only once.Assume a manufacturing company.
Allocation bases for which the information system can provide data:
1.Number of employees per department.
2.Employee wages and salaries per department.
3.Production facility square metreage.
4.Hours of operation of each production department.
5.Machine-hours by department.
6.Operations costs of each department.
7.Hours of computer use per month per department.
8.Indirect labour-hours per department.
Cost pools:
________ a.Vice CEO of Finance's office expenses.
________ b.Computer operations used in conjunction with manufacturing.
________ c.Personnel Department.
________ d.Manufacturing machinery cost.
________ e.Energy costs.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Correct Answer:

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a.Operations costs of each department.
b...

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