When Calculating a Departmental Overhead Rate,the Numerator Should Be The

question 114

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:

Unrecognized Prior Service Cost

Costs arising from retroactive benefits granted in a pension plan amendment, not immediately recognized as pension expense in financial statements.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the asset's useful life.

Pension Plan Accounting

The process of recording and managing all the financial aspects of a pension plan, including its liabilities and assets.

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting rules and standards for financial reporting.