In a standard costing system, overhead is applied to production on a basis of:
A) the denominator hours chosen for the period.
B) the budgeted hours for the normal production level of activity.
C) the actual hours required to complete the output of the period.
D) the standard hours allowed to complete the output of the period.

Question

Quizplus · Accepted Answer

In a standard costing system, overhead is applied based on the standard hours allowed to complete the output of the period, which helps in determining variances between actual and standard costs.

In a Standard Costing System, Overhead Is Applied to Production