A Formal Account That Has Columns for Date, Explanation, Posting

question 48

Multiple Choice

A formal account that has columns for date, explanation, posting reference, debit, and credit is called the:

• A) T account.
• B) standard account form.
• C) ledger.
• D) chart of accounts.

---

Definitions:

Manufacturing Overhead

All indirect costs associated with the manufacturing process, such as maintenance, utilities, and quality control.

Machine-Hours

A measure of production time that tracks the number of hours a machine is operated.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual jobs, calculated at the beginning of a period by dividing the estimated total overhead costs by an allocation base such as estimated total units in the allocation base.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies directly with production volume, such as utilities and raw materials.