Allocating Support Costs using the Single Rate Method

This video shows how to allocate the costs of a support department using the single-rate method. Under the single-rate method, one overall rate is calculated that includes both variable costs and fixed costs. This rate is then applied to each division. Support department costs in this manner three different ways:
(1) using budgeted costs and budgeted hours
(2) using actual costs and actual hours
(3) using budgeted costs and actual hours
Edspira is your source for business and financial education. To view the entire video library for free, visit www.Edspira.com
To like us on Facebook, visit / edspira
Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit www.MichaelMcLa...
To follow Michael on Facebook, visit
/ prof.michael.mclaughlin
To follow Michael on Twitter, visit
/ prof_mclaughlin-
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
-
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* eepurl.com/dIaa5z
-
SUPPORT EDSPIRA ON PATREON
* / prof_mclaughlin
-
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* edspira.thinki...
-
LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: podcasts.apple...
* Spotify: open.spotify.c...
* Website: www.edspira.co...
-
GET TAX TIPS ON TIKTOK
* / prof_mclaughlin
-
ACCESS INDEX OF VIDEOS
* www.edspira.co...
-
CONNECT WITH EDSPIRA
* Facebook: / edspira
* Instagram: / edspiradotcom
* LinkedIn: / edspira
-
CONNECT WITH MICHAEL
* Twitter: / prof_mclaughlin
* LinkedIn: / prof-michael-mclaughlin
-
ABOUT EDSPIRA AND ITS CREATOR
* www.edspira.co...
* michaelmclaugh...

[@sarah_abdulaziz]

Thank you so much!! I have final exam next week , and I am understand, You are vary clear to connect the informations to us , thank you again and keep going.

[@MyFinancialFocus]

Allocating costs is definitely pretty interesting in business.

[@kearienjeri3103]

I like how you explain and the use of colour is amazing, great job!!

[@Edspira]

Thanks!

[@lauraramos5452]

great job explaining. Thanks!!

[@mtondimartha]

Thank You

[@hamdiabdullahi9001]

thanks

[@kaleabemiyayu1392]

quick question any one what if the actual cost multiplied by 700 w/c resulted in 10.5 mil and the total or cost pool w/c is 10.5 mil doesn't match????????

[@SS-xf1ez]

:) Thanks!

[@needed6043]

i am confused . is this an additional method beside direct , step down, and reciprocal of allocating service departments cost or what ?

[@yuvrajmsd4805]

Cpa and entrepreneurs