When Using a Normal Costing System

question 27

Multiple Choice

When using a normal costing system

• A)Direct material and direct labor are recorded at standard cost and overhead is applied to products using a predetermined overhead rate.
• B)Direct material and direct labor are recorded at actual cost and overhead is treated as a period cost.
• C)Direct material and direct labor are recorded at actual cost and overhead is applied to products using a predetermined overhead rate.
• D)Direct material and direct labor are recorded at standard cost and overhead is treated as a period cost.

---

Definitions:

Government Agencies

Organizations at the federal, state, or local level that implement and manage specific government policies and programs.

Federal Funds Rate

The interest rate at which depository institutions lend reserve balances to other depository institutions overnight, a key economic policy tool used by the Federal Reserve.

Economic Growth

An increase in the production of goods and services in an economy over a period, reflecting a rise in national income and standard of living.

Tax Rate

A tax rate is the percentage at which an individual or corporation is taxed.