Which of the Following Statements Regarding the Manufacturing Overhead Budget

question 128

Multiple Choice

Which of the following statements regarding the manufacturing overhead budget is incorrect?

• A) Both fixed and variable manufacturing overhead costs are budgeted.
• B) The manufacturing overhead budget calculates the budgeted overhead costs for the year and also the predetermined overhead allocation rate for the year.
• C) The cost accountant and the production manager work together to project variable and fixed manufacturing costs.
• D) Depreciation on manufacturing equipment is not included because the production manager has no control over that cost allocation.

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