The Overhead Component of Product Cost Is

question 20

Multiple Choice

The overhead component of product cost is:

• A) the sum of the actual overhead costs incurred in the manufacture of the product.
• B) likely to be the same amount for every product made by the company.
• C) an estimated amount based on labor hours, machine hours, or some other activity.
• D) determined at the end of the year when actual costs and actual production are known.