In Activity-Based Costing,the Predetermined Overhead Allocation Rate Can Be Computed

question 175

Multiple Choice

In activity-based costing,the predetermined overhead allocation rate can be computed by ________.

• A) dividing the total estimated overhead costs by the total estimated quantity of the overhead allocation base
• B) multiplying the actual quantity of the allocation based used by the allocated manufacturing overhead cost
• C) dividing the total estimated overhead costs by the total estimated direct labor costs
• D) dividing each product's total manufacturing cost by the associated number of units

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Definitions:

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Professionals who provide accounting services to the public, including audit, tax preparation, and consulting, typically holding a CPA license.