Determining the Standard Fixed Factory Overhead Cost Applied to Production

question 80

Multiple Choice

Determining the standard fixed factory overhead cost applied to production for a period involves all the following essential elements except:

• A) The actual amount of fixed overhead cost incurred during the period.
• B) A cost driver (or drivers) for applying the fixed overhead.
• C) The standard fixed overhead application rate.
• D) An assumed output level, as reflected by the quantity of the cost driver for applying the fixed overhead (i.e., the denominator activity level for the period).
• E) The total budgeted fixed overhead cost for the period.