Answer
Examples of allocation bases used to allocate support-department cost pools to operating departments include:
1. Direct labor hours: The number of hours worked by direct labor in the operating department.
2. Machine hours: The number of hours that machines in the operating department are in use.
3. Square footage: The area occupied by the operating department.
4. Number of employees: The total number of employees in the operating department.
These bases help distribute support department costs to operating departments based on relevant factors.
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