Answered

1. Which of the following is a cost incurred by or allocated to service departments"
A) Direct Materials
B) Direct Labor
C) Manufacturing Overhead (allocated based on a predetermined rate)
D) Selling Expenses
E) None of the above are service department costs.
$10/direct labor hour



Answer :

GinnyAnswer

Final answer:

Indirect costs, also referred to as service department costs or overhead costs, are expenses that are incurred by multiple cost centers within an organization.


Explanation:

Indirect costs are costs that apply to more than one cost center within an organization, such as shared facilities or general administration. These costs are also known as service department costs or overhead costs. Examples include information technology support and payroll processing services.


Learn more about Cost Centers here:

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