An Activity-Based Cost (ABC) Driver Applies Factory Overhead to Products

question 96

Multiple Choice

An activity-based cost (ABC) driver applies factory overhead to products or services according to the:

• A) Activity output as measured by the units produced.
• B) Activity level of hours of direct labor.
• C) Resource demands/resource consumption of the firm's outputs (goods or services produced).
• D) Budgeted activity level for the period.
• E) Standard machine hours allowed for good output produced during the period.

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