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.

---

Definitions:

Gametes

Reproductive cells (sperm in males and eggs in females) that unite during sexual reproduction to form a new organism.

Chromosomes

Long strands of DNA wound around proteins, located in the cell nucleus, carrying genetic information.

Genotype

Genetic makeup of an individual.

Phenotype

Characteristic observed in an individual due to the expression of his or her genotype.