When Calculating the Total Amount of Manufacturing Overhead to Allocate

question 113

Multiple Choice

When calculating the total amount of manufacturing overhead to allocate to a particular job, the company would multiply each departmental overhead rate by ________ and then ________ together the allocated amounts from each department.

• A) the actual amount of the departmental allocation base used by the job; add
• B) the actual amount of the plantwide allocation base used by the job; add
• C) the actual amount of the departmental allocation base used by the job; multiply
• D) the actual amount of the plantwide allocation base used by the job; multiply

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A system or process that is controlled or governed by the individuals or entities to which it applies, without external enforcement.

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