How Do You Calculate Allocated Manufacturing Overhead to a Certain

question 320

Multiple Choice

How do you calculate allocated manufacturing overhead to a certain job?

• A)By multiplying the total estimated manufacturing overhead by the total estimated allocation base to be used
• B)By multiplying the predetermined manufacturing overhead rate by the actual allocation base used by the job
• C)By multiplying the predetermined manufacturing overhead rate by the estimated allocation base to be used by the job
• D)By multiplying the estimated manufacturing overhead rate by the actual allocation base used by the job

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Definitions:

TC

Total Costs, the sum of all costs incurred in the production of goods or services.

TR

Total Revenue; the total receipts from sales of goods or services provided by a company before any deductions are made.

TVC

Total Variable Cost; the total of all costs that vary with the level of output produced by a company.

Economic Loss

A monetary reduction in income, net worth, or value of assets beyond normal expectations, often as a result of business activities or economic policies.