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26 Cost Allocation and Activity-Based Costing

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Presentation on theme: "26 Cost Allocation and Activity-Based Costing"— Presentation transcript:

1 26 Cost Allocation and Activity-Based Costing
C H A P T E R Cost Allocation and Activity-Based Costing Financial and Managerial Accounting 13e Warren Reeve Duchac human/iStock/360/Getty Images

2 Allocation of Factory Overhead Costs
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3 Single Plantwide Factory Overhead Rate Method—Ruiz Company
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4 Comparison of Single Plantwide Rate and Multiple Production Department Rate Methods
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

5 Allocating Factory Overhead to Products— Ruiz Company
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

6 Multiple Production Department Rate Method—Ruiz Company
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

7 Conditions for Product Cost Distortion— Ruiz Company
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8 Multiple Production Department Factory Overhead Rate Method vs
Multiple Production Department Factory Overhead Rate Method vs. Activity-Based Costing ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

9 Activity Bases—Ruiz Company
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

10 Activity Rates—Ruiz Company
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

11 Activity-Based Product Cost Calculations
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

12 Activity Bases—Ruiz Company
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

13 Overhead Cost Allocation Methods: Ruiz Company
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

14 Selling and Administrative Activity Product Differences
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

15 Activity-Based Costing Method— Hopewell Hospital
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

16 Hopewell Hospital Overhead Costs Allocated to Mia Wilson
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

17 Customer Profitability Report— Hopewell Hospital
©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


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