chapter 2 questions extra Flashcards
1
Q
What factors should be considered in selecting an allocation base to be used in computing a predetermined overhead rate?
A
It should be the cost that DRIVES the expenses 🡪 the cause & effect
2
Q
Provide two BUSINESS reasons why overhead might be over or under applied in a given
A
Higher volume – more hours because we made more
New employees, employees in not in the right role, materials costs are more
