University:
McMaster University
Course:
ACC 928 | Introductory Management Accounting
Academic year:

2022
Views:

281

Pages:

1
Author:

Sabrina S.

Ct Activity Based Costing, 7 Lean Productiony Costs of quality Diff blid & understand how to calculate a plant vaide overhead rate & departmental overhead rate Plant wide Overhead Rate any job produced ina single rate. plant is allocated Mot using this Departmental Overhead Rate Each department incurs different types/amounts of MON Each product/Job user the departments to different est ent Apply the steps in the ABC method 1: Identify its primary activities Aka activity cost pools estimate tolal Mott costs associated with each activity 2: selects allocation base for each activity & estimates the total amount that will be used during the year. 3: Calculates its activity cast allocation rates using info from (1) & (2) Actinly cost allocation rate Total estimated acitivty cost Tolal estimated activity allocation base mal 4: company allocates activities some mott from each activity to the individual jobs that use the MOH allocated to used Activity cast allocation rak X Actual amount of activity allocation Lase by job