Bower Company manufactures a product in a factory that has two producing departments, Cutting and Stitching, and two support departments, D1 and D2. The activity driver for D1 is number of employees, and the activity driver for D2 is number of machine hours. The following data pertain to Bower:
Required:
A. Calculate the cost assignment ratios to be used under the direct method for departments D1 and D2.
B. Allocate the support department costs to the producing departments by using the direct method.
Definitions:
Differential Association
A theory in criminology that posits individuals learn deviant behavior through interaction with others, emphasizing the role of social relationships in the acquisition of deviance.
Differential Association Theory
A criminological theory suggesting that individuals learn deviant behavior through their interactions and associations with others.
Rewards
Benefits, often in the form of money, gifts, or recognition, given for performing certain tasks or behaviors aimed at achieving desired outcomes.
Consequences
The outcomes or effects that follow from an action or decision.
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