In stage two of the two-stage allocation process, all of the manufacturing-overhead costs accumulated in each production department are assigned to:
A)service departments.
B)other production departments.
C)departmental overhead centres.
D)the production jobs on which each department has worked.
E)the production jobs that have not yet commenced.

Question

Quizplus · Accepted Answer

In stage two of the two-stage allocation process, the manufacturing overhead costs accumulated in each production department are assigned to the production jobs on which each department has worked. This is done by using a predetermined overhead rate or by identifying the actual overhead costs that are directly traceable to each production job. This ensures that each production job bears the overhead costs of the departments that have contributed to its production.

In Stage Two of the Two-Stage Allocation Process, All of the Manufacturing-Overhead