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.