Manufacturers Follow Four Steps to Implement a Manufacturing Overhead Allocation

question 103

Multiple Choice

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The first step is to

• 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) estimate total manufacturing overhead costs for the coming year.
• D) calculate a predetermined manufacturing overhead rate.

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