A Normal Costing System Uses Actual Costs for Direct Materials

question 8

Multiple Choice

A normal costing system uses actual costs for direct materials and direct labor, and:

• A)Actual costs for factory overhead.
• B)Estimated factory overhead costs based on material cost.
• C)Estimated factory overhead costs based on labor cost.
• D)Estimated costs for factory overhead.
• E)Charges actual factory overhead as a lump sum.

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