In an Actual Costing System, the Overhead Allocation Rate Is

question 112

Multiple Choice

In an actual costing system, the overhead allocation rate is calculated as:

• A) Actual overhead cost + actual quantity of allocation base
• B) Actual overhead cost / actual quantity of allocation base
• C) Actual quantity of allocation base / actual overhead cost
• D) Actual overhead cost / standard quantity of allocation base

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Definitions:

Market Value

The estimated worth or price at which an asset would trade in a competitive auction setting.

Accounting

The systematic process of recording, analyzing, and reporting financial transactions of a business or individual.

Investment

Allocation of resources, usually money, in the expectation of generating an income or profit.

Available-for-sale Debt Portfolio

A categorization of debt investments not classified as held-to-maturity or trading securities, which can be sold prior to maturity.