Assuming the predetermined overhead rate is $10.00, what is the total overhead allocated to each washing mitt using the current costing system?
A)$2.00
B)$10.00
C)$4.00
D)$2.67

Question

Quizplus · Accepted Answer

The total overhead allocated to each washing mitt using the current costing system would depend on the basis of allocation (e.g., per unit, labor hours, machine hours, etc.). Since the predetermined overhead rate is $10.00, and without additional context on the allocation base or the quantity related to it, it's not possible to accurately determine the overhead allocated per washing mitt. However, given the choices, $4.00 seems to be a selected figure without the context to support how it was derived.

Assuming the Predetermined Overhead Rate Is $10