When Calculating the Total Amount of Manufacturing Overhead to Allocate

question 131

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 plant-wide 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 plant-wide allocation base used by the job; multiply
• E) the actual amount of the activity allocation base used by the job; add

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Definitions:

Eco-Intensity Measures

Quantitative assessments that evaluate the environmental impact of a company's activities in relation to its economic value or output.

Output

The quantity of goods or services produced in a given time period by a firm or industry.

Input

Resources used in the production process, including raw materials, labor, and capital, which contribute to the creation of goods or services.

Stakeholders

Individuals or groups with an interest or concern in the success and operations of a business, including investors, employees, customers, and suppliers.