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Tyler's Consulting Company has purchased a new $15,000 copier. This overhead cost will be shared by the purchasing, accounting, and information technology departments since those are the only departments which will be able to access the machine. The company has decided to allocate the cost based on the number of copies made by each department. The copier is estimated to provide 1 million copies over its life. Each division has estimated the number of copies which will be made over the life of the copier.Purchasing 350,000Accounting 200,000Information Tech 425,000Note: Cost allocations are computed to 4 significant digits. Resulting values are rounded to the whole dollar.If the purchasing department makes 72,000 copies this year what will be their allocated overhead?A $25,200B $70,200C $1,109D $2,160
Direct and Indirect costs Recall such direct costs are costs which can be traced particularly to the end product of the production procedure while indirect costs cannot be so
WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS
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Identify and explain many classification of costs for planning, control, performance evaluation and decision making.
weekly working hour 48 , hourly wage rate 15$ , price rate per unit 6$ , normal time taken per piece 36 minuets , normal output per week 220 pieces , actual output per week 275 pie
meaning and scope of cost accounting
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