In Normal Costing the Manufacturing Overhead Control and Manufacturing Overhead

question 49

Multiple Choice

In normal costing the manufacturing overhead control and manufacturing overhead allocated accounts in the general ledger respectively, refer to

• A)the record of actual overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × actual base units.
• B)the record of total budgeted overhead costs and the record of actual overhead allocated to date.
• C)the record of actual overhead costs, and the record of overhead allocated to specific jobs using actual rates × budgeted base units.
• D)the record of total budgeted overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × actual base units.
• E)the record of actual overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × budgeted base units.

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Definitions:

Economic Inefficiency

A situation in which resources are not allocated optimally, leading to wastage or less than maximum output.

Insurance Markets

Markets where individuals and entities can purchase insurance products to protect against various types of risk.

Principal-Agent Problem

A dilemma in economics where one party (the agent) is expected to act in the best interest of another (the principal), but may have personal incentives that conflict with this duty.

Managers

Individuals in an organization responsible for directing the efforts of others and overseeing business operations to achieve certain goals.