In normal costing, an actual quantity of cost allocation used base is multiplied to budgeted fixed overhead rates to calculate the ___________?
Correct answer: C. fixed manufacturing overhead cost
- A. indirect manufacturing overhead cost
- B. direct manufacturing overhead cost
- C. fixed manufacturing overhead cost
- D. variable manufacturing overhead cost
Explanation
Normal costing applies the actual quantity of the allocation base to the budgeted fixed-overhead rate. The resulting amount is fixed manufacturing overhead cost.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
In two of the methods of costing, the operating income will be different if the __________?
The factors that affect the demand of the customers include __________?
The fixed direct manufacturing cost is calculated, by multiplying standard prices for standard quantity of allowed input for actual output in ___________?
If the budgeted fixed cost is $40000 and budgeted fixed cost is $16 per unit, then budgeted denominator level will be __________?
The direct material cost of goods sold is $8450, throughput contribution is $18650 then the revenues will be equal to __________?
An average figure, for particular period which provides zero meaning feedback to marketing manager, is termed as ____________?