In normal costing, the manufacturing overhead allocated is also called _________?
Correct answer: A. manufacturing overhead applied
- A. manufacturing overhead applied
- B. labor overhead applied
- C. cost overhead applied
- D. budget overhead appliedGet Executive Coaching
Explanation
In normal costing, manufacturing overhead is assigned to products using a predetermined overhead rate, so it is called manufacturing overhead applied. The term refers to allocated overhead, not merely budgeted overhead.
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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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