Allocation of overhead costs, Cost Accounting

Allocation of Overhead Costs

Allocation of overheads is the term utilized where the overhead cost item can be charged to a exact cost center without the requirement for any estimation procedure. As an example here,

A. The salary of the engineer in charge of power generation will be charged to power generating cost center,

B. The salary of the sales manager will be allocated to the selling overhead cost center.

Posted Date: 2/5/2013 7:02:32 AM | Location : United States







Related Discussions:- Allocation of overhead costs, Assignment Help, Ask Question on Allocation of overhead costs, Get Answer, Expert's Help, Allocation of overhead costs Discussions

Write discussion on Allocation of overhead costs
Your posts are moderated
Related Questions
You are assisting the accountant on the preparation of the final accounts of a business with a year-end of 31 December. A trial balance has been drawn up and a suspense account ope

What are the strengths and weaknesses of the various costing methods and which would you recommend for a manufacturing enterpris? 2000word assay plus appendix

Goal Definition and Communication - Behavioural Aspects of Standards Goal Definition The desired goals should be clearly defined to individuals, departments and the organ

COST CONCEPTS / CLASSIFICATION OF COSTS 1. According to functions Administration cost / office cost Selling cost Production cost / factory cost / manufacturing c

Describe briefly the possible causes of: (i)   the material usage variance, (ii)  the labour rate variance, (iii)  the sales volume profit variance.

Marginal analysis finds to equalize the cost of producing one more item (marginal costs) with the revenue gained from selling one more item (marginal revenue).

Ordering cost is incurred whenever the inventory is replenished. It includes costs associated with the processing and chasing of the purchase order transportation, inspec

Bakeson Bearings Ltd is preparing to submit a bid for a bearings order.  Janet Lake,  CEO of the Manufacturing Division, has asked Jason Docker, the management accountant, to prepa

Bentley Plastics Ltd. Has annual fixed cost of $450,000, variable costs of $15 per unit and a contribution rate of 40% a.    What annual revenue is required to break even? b.

Gomez incurred $350,000 of research and development costs to develop a product for which a patent was granted on January 2, 2008. Legal fees and other costs associated with the re