To Assign Overhead Costs to Each Product, the Company

question 155

Multiple Choice

To assign overhead costs to each product, the company

• A) multiplies the activity-based overhead rates per cost driver by the number of cost drivers estimated to be used per product.
• B) multiplies the overhead rate by the number of direct labor hours used on each product.
• C) assigns the cost of each activity cost pool in total to one product line.
• D) multiplies the rate of cost drivers per estimated cost for the cost pool by the estimated cost for each cost pool.

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