The budgeted variable overhead rate, is multiplied to an actual quantity of allocation base, is to calculate variable manufacturing cost of overheads in ___________?
Correct answer: D. normal costing method
- A. direct costing method
- B. indirect costing method
- C. actual costing method
- D. normal costing method
Explanation
Normal costing applies a budgeted variable-overhead rate to the actual quantity of the allocation base used. Actual costing would use the actual 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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