Crowley Company has gathered the following data related to its production process of two of its products for the week ended April 30: The costs above that appear to be allocated rather than traced are:
A)Unit level material costs.
B)Variable conversion costs.
C)Indirect production costs only.
D)All indirect costs.

Question

Crowley Company has gathered the following data related to its production process of two of its products for the week ended April 30:  The costs above that appear to be allocated rather than traced are:
A)Unit level material costs. 
B)Variable conversion costs. 
C)Indirect production costs only. 
D)All indirect costs.

Quizplus · Accepted Answer

The costs listed above (rent, utilities, and supervisory salaries) are all indirect costs, meaning they cannot be directly attributed to a specific unit of product, and therefore must be allocated.

Crowley Company Has Gathered the Following Data Related to Its