The overtime premium should be charged to the department that is responsible for the overhead being worked. If the reason that overtime is worked is simply that the volume of work requires it, the overtime premium is charged to overhead and allocated to all of the units produced. Given the situation in this question, it is reasonable that at least some of the overtime premium be charged to the production department.
The overtime premium should be charged to the department that is responsible for the overhead being worked. If the reason that overtime is worked is simply that the volume of work requires it, the overtime premium is charged to overhead and allocated to all of the units produced. Given the situation in this question, it is reasonable that at least some of the overtime premium be charged to the sales department.
The overtime premium should be charged to the department that is responsible for the overhead being worked. If the reason that overtime is worked is simply that the volume of work requires it, the overtime premium is charged to overhead and allocated to all of the units produced. Because the personnel department would not have been able to cause or prevent the overtime work, the costs should not be charged to the personnel department.
The overtime premium should be charged to the department that is responsible for the overhead being worked. If the reason that overtime is worked is simply that the volume of work requires it, the overtime premium is charged to overhead and allocated to all of the units produced. Given the situation in this question, it is reasonable that the overtime premium be charged to both the production and sales departments.
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