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Madison Davis
on Nov 17, 2024

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Which of the following represents the factory overhead applied to a product?

A) predetermined factory overhead rate times estimated activity base
B) actual factory overhead rate times estimated activity base
C) predetermined factory overhead rate times actual activity base
D) actual factory overhead rate times actual activity base

Factory Overhead Applied

The allocation of indirect manufacturing costs to produced goods based on estimated or predetermined rates.

Predetermined Factory Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs based on a selected activity base to individual products.

Actual Activity Base

A measure used to allocate costs based on the actual level of activity or usage, often used in budgeting and accounting.

  • Acquire knowledge on how a predetermined overhead rate is used for the allocation of factory overhead and its computation from budgeted data.
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LS
Landon StinsonNov 19, 2024
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