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:

Breach

To violate a law, by an act or an omission, or to break a legal obligation that one owes to another person or to society.

Illegal Contract

An agreement that is either unlawful in nature or made with the purpose of undertaking an illegal act, and thus, is not enforceable by law.

Executory

Pertaining to contracts or agreements that are not yet fully performed or completed by all involved parties.

Enforce

To compel observance of or obedience to a law, rule, or obligation.