Develop a cost allocation method for materials overhead
Please see the attached Word document. Would anyone be able to help me with this?
The questions that I have are as follows:
1. Using assumed numbers, develop a cost allocation method for materials overhead (MOH) to quantify and communicate the strategy of parts standardization.
2. Explain how use of your method would support the strategy.
3. Is any method which applies the entire MOH cost pool on the basis of one cost driver sufficiently accurate for product decisions in the highly competitive portable scope markets? Explain.
4. Are MOH product costing rates developed for management reporting appropriate for inventory valuation for external reporting? Why or why not?
This question has the following supporting file(s):
Here is a sample of what you will find in this solution:
"3) This is a good start as it might be the largest bang for the effort. However, the situation is too competitive to stop here. Material costs can be driven down by many methods besides this one. "
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Active since 2012