To Assign Overhead Costs to Each Product, the Company

question 87

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 expected 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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Definitions:

Inversely Proportional

A relationship between two variables where as one variable increases, the other decreases at a consistent rate, and vice versa.

Enzyme Concentration

The amount of enzyme present in a solution, which affects the rate of enzyme-catalyzed reactions.

Energy Of Activation

The minimum amount of energy that reacting species must have in order to undergo a specified reaction.

Enzyme

Biological molecules (typically proteins) that significantly speed up the rate of virtually all of the chemical reactions that take place within cells.