Q1. Which of the following statements is(are) false false regarding first stage and second stage cost allocation methods?
A. The basic difference between a first stage cost allocation and second stage cost allocation is that cost pools are not used in first stage cost allocations
B. Pre determined overhead Rae's are used In first stage cost allocations but not in second cost allocations
A. A is false
B. B is false
Q2. Which of the following should not be used as the allocation base in a company that appropriately uses a single plantwide ?rate?
A. Sales volume
B. Machine hours
C. Material costs
D.direct labor costs
E. Direct labor hours
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