For the Current Period,given an Actual Demand of 105,a Forecasted

question 53

Multiple Choice

For the current period,given an actual demand of 105,a forecasted value of 97,and an alpha of 0.4,the simple exponential smoothing forecast for the next period would be

• A)80.8.
• B)93.8.
• C)100.2.
• D)108.2.

---

Definitions:

Departmental Overhead Rate

A charge rate specific to each department of a company, calculated to allocate indirect costs to products more accurately.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by total direct labor hours or machine hours, applied company-wide.

Overhead Allocations

The process of distributing indirect costs (overheads) across various cost objects, such as products or departments, based on predetermined criteria.

Departmental Overhead Rates

Overhead allocation rates used that vary by department within a company, recognizing that different departments incur different amounts of overhead costs.