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Discuss the most appropriate method for allocating the manufacturing overhead. How would different allocation methods affect the bottom line for your division?

Assignment 1: Cost Flows in an Organization

By the due date assigned, respond to the following in the Discussion Area below:

Assume you are a division manager for a manufacturing company of your choice.

  • Describe the company and identify the division you manage.
  • Think about the costs associated with developing and manufacturing your product. Identify whether the company would use process or product costing and describe why the selected method is most appropriate.
  • Identify the manufacturing costs involved in producing your product and classify each cost as direct materials, direct labor, or manufacturing overhead.
  • Discuss the most appropriate method for allocating the manufacturing overhead. How would different allocation methods affect the bottom line for your division?

Be sure to cite any sources using APA style. You may use this APA Citation Helper as a guide.

Through the end of the module, provide substantive responses to at least two other students’ initial posts.


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