The Number of Units to Account for Is Calculated As

question 69

Multiple Choice

The number of units to account for is calculated as:

• A)the number of units in beginning inventory plus the number of units started this period.
• B)the number of units in beginning inventory plus the number of units in ending inventory.
• C)the number of units started during the period.
• D)the number of equivalent units produced during the period.

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Definitions:

Plantwide Factory Overhead Allocation

Plantwide factory overhead allocation involves spreading all of the indirect costs of operating a manufacturing plant across all products based on a single cost driver.

Plantwide Factory Overhead Rate

This rate calculates the total factory overhead for a plant as a single rate, which is then applied to allocate overhead costs to different products.

Allocation-Base Usage

The process of distributing costs based on predetermined criteria or bases, such as labor hours or machine hours.

Activity Rates

The estimated activity cost divided by estimated activity-base usage.