Which of the Following Formula Is Used by Duration-Based Costing

question 96

Multiple Choice

Which of the following formula is used by Duration-Based Costing (DBC) to assign the overhead costs to a particular product?

• A)Overhead cost per unit = Units of product produced at practical capacity ÷ Activity rate
• B)Overhead cost per unit = Total overhead cost ÷ Activity rate
• C)Overhead cost per unit = Overhead rate × Capacity cost rate for a particular product
• D)Overhead cost per unit = Overhead rate × Cycle time for a particular product

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