Respuesta :
Answer:
The support department allocation rate for the Accounting Department = $250 per invoice.
Explanation:
Total cost of accounting department = $500,000
The cost driver for accounting department is number of invoices processed.
Total number of invoices processed for support department = sum of number of invoices processed by Micro, Macro and Super division.
Micro = 700 invoices
Macro = 800 invoices
Super = 500 invoices
Total = 2,000 invoices
The support department allocation rate for the Accounting Department = (Total cost of accounting department)/(number of invoices processed)
= $500,000/2,000 = $250 per invoice.
The support department allocation rate for the Accounting Department = $250 per invoice.
The allocation rate for the accounting department is $250.
Further Explanation:
Cost allocation:
Cost allocation refers to the process of allocating the cost of the business to the various departments. The management of the company has to calculate the cost incurred by each department. There are some expenses which are incurred collectively, so the management has to allocate the common cost to the various departments. The allocation of the cost should be done in a manner of the utilization of the expenses or cost by that specific department.
Calculate the support department allocation rate for the accounting department:
The allocation of the accounting department cost will be made on the basis of number of invoices processed. The services of accounting department are used for the preparation of the invoices. So, the cost of accounting will be allocated on the basis of the number of invoices.
Calculate the allocation rate for the accounting department:
[tex]\text{Allocation rate for accounting department}=\dfrac{\text{Accounting department cost}}{\text{Total number of invoices processed}}\\=\dfrac{\$500,000}{\$2,000}\\=\$250[/tex]
Thus, the allocation rate for the accounting department is $250 per invoice.
Working Note:
Calculate the total number of invoices processed:
[tex]\text{Total invoices processed} = \left [ \text{Invoices processed (Micro)}+\text{Invoices processed (Macro)} + \text{Invoices processed(Super)} \right] \\= 700+800+500\\= 2,000[/tex]
The total number of invoices is 2,000.
Learn more:
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2. Learn more about the manufacturing cost https://brainly.com/question/10570313
3. Learn more about the average cost per unit https://brainly.com/question/4974216
Answer details:
Grade: Senior School
Subject: Cost Accounting
Chapter: Activity-Based Costing
Keywords: Activity-Based Costing, Costing, Cost accounting, Allocation of cost, Cost allocation, Fixed costing, Variable costing, Departmental costing, Accounting, Direct expenses, Indirect expenses, Cost, ABC costing.
