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.
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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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