Direct Method versus Step Down Method -- Electricity & Water

Related BrainMass Solutions

• Critically evaluate this allocation method

  Water is the first service department allocated. Compute the cost of electricity per kilowatt-hour using step-down method and direct method.

• Managerial Acct: HI LOW Method; Activity Based Costing COGS

  13,900 Required: a) Using the hi/lo method, derive a linear equation describing the behavior of electricity cost b) Using the equation from part a, compute the expected electricity cost at 18,000 units of production

• High low method

  * 1500 Direct Labor- hours =$13000 -$8*1500= $13000 -$12000=$1000 Equation using High low method : Cost of Electricity (Y) =$8 * Direct labor hour (X) +$1000 Y =$8X+$1000 Thank you.

• Pearce Company, Morrison Sanitation, absorption step-down

  Allocate service department costs using the direct method. 2. Allocate service department costs using the step-down method. Personnel costs should be allocated first. 3.

• Allocating Costs using Direct and Step-Down Methods

  Response discusses allocating costs using direct and step-down methods.

• Activity-Based Costing Defined and Explained

  Before we can start thinking about activity based costing, we need to first understand the difference between direct versus indirect costs (or sometimes prefers to as overhead costs).

• Measuring and Assigning Support Department Costs

  The step-down method improves upon the direct method because it accounts for some of the services that overhead departments perform for each other. The direct method doesn't consider this at all.

• comparing the value of food with the value of electricity

  The question boils down to this. How much less food can be grown with the removal of 40,000 acre feet of water? Maybe there is no loss of food and only benefit of more electricity.

• Direct and step-down methods with dual rates (Petro-X)

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