A Number of Costs That Are Commonly Allocated Are Listed $\text { Cost Description } \quad \quad \quad \quad \quad \quad \quad \quad \quad \text { Allocation Base Alternatives }$

question 52

Essay

A number of costs that are commonly allocated are listed in the following table followed by two alternative cost allocation bases.
$\text { Cost Description } \quad \quad \quad \quad \quad \quad \quad \quad \quad \text { Allocation Base Alternatives }$
$\begin{array}{|l|l|l|}\hline \text { Cafeteria costs } & \text { Direct labor costs } & \text { Number of employees } \\\hline \text { Computer system costs } & \text { Number of departments } & \text { Amount of computer time used } \\\hline \text { Indirect labor costs } & \text { Direct labor hours } & \text { Number of supervisors } \\\hline \text { Indirect materials } & \text { Direct labor hours } & \text { Direct material dollars } \\\hline \text { Factory rent } & \text { Number of departments } & \text { Square footage } \\\hline \text { Fringe benefits costs } & \text { Number of departments } & \text { Number of employees } \\\hline \text { Housekeeping costs } & \text { Square footage } & \text { Number of employees } \\\hline \text { Joint costs } & \text { Number of joint products } & \text { Sales value at split-off } \\\hline \text { Maintenance costs } & \text { Machine hours } & \text { Number of employees } \\\hline \text { Personnel department costs } & \text { Number of employees } & \text { Number of departments } \\\hline\end{array}$
Required:
For each cost listed,circle the cost allocation base that you believe would be more appropriate for allocating the cost.

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Definitions:

Depression

A mental disorder manifested by an unwavering sense of dejection or loss of interest in customary activities, greatly obstructing day-to-day performance.

Depressive Episodes

Periods characterized by low mood, lack of energy, and a disinterest in life, often found in the context of major depressive disorder.

Professional Therapy

Professional Therapy involves seeking help from a trained and licensed therapist, psychologist, or counselor to address mental health issues, behavioral problems, or emotional distress.

Abnormal Behavior

Actions, thoughts, or feelings that are significantly deviant from cultural norms or expectations, often indicating a psychological disorder.