An Activity-Based Costing System Allocates Factory Overhead Rates to Products

question 18

Multiple Choice

An activity-based costing system allocates factory overhead rates to products or services using:

• A) a single plantwide overhead rate.
• B) the cost of activities based on an activity rate times the number of activity-based usage quantities.
• C) an allocation of budgeted revenues produced by a product or service.
• D) an end-of-year allocation of costs to products or services.

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