Manufacturers Follow Four Steps to Implement a Manufacturing Overhead Allocation

question 44

Multiple Choice

Manufacturers follow four steps to implement a manufacturing overhead allocation system. What is the first step?

• A)Select an allocation base and estimate the total amount that will be used during the year.
• B)Allocate some manufacturing overhead to each individual job.
• C)Calculate a predetermined manufacturing overhead rate.
• D)Estimate total manufacturing overhead costs for the coming year.

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Definitions:

Neutral Safety Switch

A safety switch located in the control circuit of a cranking system designed to prevent engine cranking when an automatic transmission is in gear.

Open Circuit

An electrical circuit that is not energized, that is, no current is flowing. The opposite to a closed circuit.

Park Range

A setting in automatic transmissions that locks the transmission, preventing the vehicle from moving.

Inductive Pick-up Clamp

a tool used to measure electrical parameters in a conductor without direct contact, commonly used in automotive diagnostics.