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.

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Definitions:

Voting Shares

Voting shares are shares of a company's stock that grant the shareholder the right to vote on corporate policy and the composition of the board of directors.

Board of Directors

A group of individuals elected by the shareholders of a company to oversee the management and provide guidance on corporate affairs.

Control

The power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often through holding a majority of voting rights.

News-gathering

The process of collecting, reporting, and analyzing news from various sources.