Asked by Maria Mendez on Jun 07, 2024
Verified
Which of the following represents the factory overhead applied to a product?
A) predetermined factory overhead rate times estimated activity base
B) actual factory overhead rate times estimated activity base
C) predetermined factory overhead rate times actual activity base
D) actual factory overhead rate times actual activity base
Factory Overhead Applied
The allocation of all indirect costs of manufacturing to the actual production, aiding in the determination of the total cost of production.
Predetermined Factory Overhead Rate
The rate used to apply factory overhead costs to the goods manufactured. The rate is determined by dividing the budgeted overhead cost by the estimated activity usage at the beginning of the fiscal period.
Activity Base
A measure used in costing, representing a unit of activity that triggers costs, helping to allocate costs more accurately.
- Assess and apply manufacturing overhead costs using pre-determined overhead rates.
Verified Answer
Learning Objectives
- Assess and apply manufacturing overhead costs using pre-determined overhead rates.
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