In an actual quantity of cost allocation used, base is multiplied to an actual fixed overhead rates, to calculate ___________?
Correct answer: A. fixed manufacturing overhead cost
- A. fixed manufacturing overhead cost
- B. variable manufacturing overhead cost
- C. indirect manufacturing overhead cost
- D. direct manufacturing overhead cost
Explanation
Multiplying the actual allocation base quantity by the actual fixed overhead rate gives the fixed manufacturing overhead cost allocated to production. Variable overhead would require a variable overhead rate instead.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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