Van Meter Company has substantial fluctuations in its production costs because of the seasonality of figs.Most fig growers have two crops a year, one in June and one in August.However, the company has been importing figs from southern hemisphere countries, which extends the supply to the months of December and February.Required:
What would you recommend as the monthly allocation base for the service departments of Van Meter Company? State your assumed cost object.A conceptual answer is required, not an example, such as cartons of figs.

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The Answer of Van Meter Company has substantial fluctuations in its production costs because of the seasonality of figs.Most fig growers have two crops a year, one in June and one in August.However, the company has been importing figs from southern hemisphere countries, which extends the supply to the months of December and February.Required:
What would you recommend as the monthly allocation base for the service departments of Van Meter Company? State your assumed cost object.A conceptual answer is required, not an example, such as cartons of figs.

Van Meter Company Has Substantial Fluctuations in Its Production Costs