Overhead Is Applied to Work in Process in a Standard

question 59

Multiple Choice

Overhead is applied to work in process in a standard costing system by:

• A)multiplying actual hours times the predetermined rate.
• B)multiplying standard hours allowed for the output of the period times the predetermined rate.
• C)multiplying actual hours times the actual rate.
• D)multiplying standard hours allowed for the output of the period times the actual rate.

---

Definitions:

Obligations

Legal or financial duties that one party is bound to perform for another, such as the repayment of a loan.

Investing Section

A part of the cash flow statement that shows cash flows from the acquisition and disposal of long-term investments and fixed assets.

Operating Section

In the context of financial reporting, this term specifies the portion of the cash flow statement that deals with cash flows from operational activities.

Cash Inflow

This is money coming into a business or entity from operations, financing, or investing activities.