The standard cost of allocation base, allowed to output achieved, is multiplied to standard variable overhead rate is to calculate __________?

Correct answer: D. variable manufacturing overhead cost

  • A. indirect manufacturing overhead cost
  • B. direct manufacturing overhead cost
  • C. fixed manufacturing overhead cost
  • D. variable manufacturing overhead cost

Explanation

Standard quantity of the allocation base allowed for actual output, multiplied by the standard variable-overhead rate, gives applied variable manufacturing overhead cost. Fixed overhead uses a budgeted fixed rate instead.

Written and checked by , editorLast updated
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