Condelezza Co. manufactures two products, A and B, in two production departments, Assembly and Finishing. Condelezza Co. expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year. Budgeted factory overhead costs for the coming year are:
The machine hours expected to be used in the coming year are as follows:
(c) Which method is better (plantwide or department)? Why?

Question

Condelezza Co. manufactures two products, A and B, in two production departments, Assembly and Finishing. Condelezza Co. expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year. Budgeted factory overhead costs for the coming year are:
  The machine hours expected to be used in the coming year are as follows:
   (c) Which method is better (plantwide or department)? Why?

Quizplus · Accepted Answer

The Answer of Condelezza Co. manufactures two products, A and B, in two production departments, Assembly and Finishing. Condelezza Co. expects to produce 10,000 units of Product A and 20,000 units of Product B in the coming year. Budgeted factory overhead costs for the coming year are:
  The machine hours expected to be used in the coming year are as follows:
   (c) Which method is better (plantwide or department)? Why?