Manufacturing Overhead Is Charged to Three Operating Divisions on the Basis

question 154

Essay

Manufacturing overhead is charged to three operating divisions on the basis of capital investment in the three divisions. If the investment is $10.8 million in the Eastern Division, $8.4 million in the Southern Division, and $17.4 million in the Far Eastern Division, how should manufacturing overhead of $888 000 be allocated to the three divisions?

---

Definitions:

John Gottman

A renowned psychologist known for his work on marital stability and relationship analysis through direct observations and research in the Gottman Institute.

Conflict Handling

The process of managing and resolving disagreements or disputes in a constructive manner between parties.

Voluntary Kin

Non-blood relationships that are considered family based on emotional bonds, choice, and mutual support rather than genetic ties.

Interpersonal Communication Skills

The abilities and techniques used to effectively exchange information, ideas, and feelings between people in various contexts, including listening, speaking, empathy, and assertiveness.