An Activity-Based Overhead Rate Is Computed as Follows

question 15

Multiple Choice

An activity-based overhead rate is computed as follows:

• A) actual overhead divided by actual use of cost drivers.
• B) estimated overhead divided by actual use of cost drivers.
• C) actual overhead divided by estimated use of cost drivers.
• D) estimated overhead divided by estimated use of cost drivers.

---

Definitions:

AFL

American Federation of Labor, a historic national federation of labor unions in the United States, which merged with the Congress of Industrial Organizations in 1955.

Threat

A declaration or suggestion of intent to cause damage, pain, or harm as a means of achieving a particular outcome or coercing actions from another party.

Union Membership

Affiliation with a labor union that represents workers in negotiations with employers over pay, benefits, and working conditions.

Public Sector

The portion of the economy composed of government services and state-owned enterprises, in contrast to the private sector.