When Calculating a Departmental Overhead Rate, the Numerator Should Be

question 57

Multiple Choice

When calculating a departmental overhead rate, the numerator should be the

• A) total estimated departmental overhead cost pool.
• B) total estimated amount of the departmental allocation base.
• C) total estimated amount of manufacturing overhead for the factory.
• D) actual quantity of the departmental allocation base used by the job.

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Definitions:

Firms Leaving

The process of companies exiting a market or industry, often due to unprofitability or strategic realignment.

Technique Of Production

The specific methods, tools, and processes used in the production of goods and services.

Production Technology

Production technology encompasses the methods, equipment, and processes used to produce goods and services, focusing on increasing efficiency and reducing production costs.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing and able to supply at that price.