Asked by Hunter McGaughey on Apr 28, 2024
Verified
The goal of using any overhead rate is to apply all production costs to the product.
Overhead Rate
The overhead rate is a calculation used to determine how much of indirect costs (overhead) a business should allocate to each unit of production or service.
- Acquire knowledge on the basics of applying indirect costs to product pricing.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
True
Explanation :
The goal of using an overhead rate is to allocate indirect costs (those not directly traceable to a specific product) to products, ensuring that all production costs are applied to the product, making the costing more accurate and comprehensive.
Learning Objectives
- Acquire knowledge on the basics of applying indirect costs to product pricing.