Question

In: Accounting

Pick one item that is sold in the store and think about how it is probably made.

Go and Walkthrough a large retailer (Supermarket, Walmart, Best Buy, Macy’s, Home Depot, etc.)

Pick one item that is sold in the store and think about how it is probably made. Then write a brief explanation if you think the Manufacturer that made it used either a single overhead rate or Activity Based Costing to allocate overhead and why. 

Solutions

Expert Solution

Answer :

A DINNING TABLE

The manufacturer used activity based costing to allocate overheads.This is because it is easy to indentify the costs both direct and indirect used to make the table.Hence the manufacturer easily assigned the cost of each activity with resources to the product according to the actual consumption

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