If a Company Uses a Predetermined Overhead Rate, Which of the Following

question 90

Multiple Choice

If a company uses a predetermined overhead rate, which of the following statements is correct?

• A) Manufacturing Overhead will be debited for estimated overhead.
• B) Manufacturing Overhead will be credited for estimated overhead.
• C) Manufacturing Overhead will be debited for actual overhead.
• D) Manufacturing Overhead will be credited for actual overheaD.
• Actual manufacturing overhead costs are accumulated on the debit side of the Manufacturing Overhead account.

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Definitions:

Decision-making Authority

The power or right vested in individuals or groups to make important decisions regarding policies, practices, or procedures within an organization.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Vertical Division of Labour

The differentiation of job roles based on hierarchical positions within an organization, where tasks are divided according to levels of authority and expertise.

Functional

Related to the natural or intended purpose of something, describing something that is designed to be practical and useful rather than merely attractive.