Which of the following is the correct order for allocating overhead costs using activity-based costing?
A)allocate support activity costs to production activities; determine overhead costs; directly trace and distribute overhead costs to support and production activities; apply production activity costs to products
B)determine overhead costs; directly trace and distribute overhead costs to support and production activities; apply production activity costs to products; allocate support activity costs to production activities
C)directly trace and distribute overhead costs to support and production activities; determine overhead costs; allocate support activity costs to production activities; apply production activity costs to products
D)determine overhead costs; directly trace and distribute overhead costs to support and production activities; allocate support activity costs to production activities; apply production activity costs to products

Question

Quizplus · Accepted Answer

The correct order for allocating overhead costs using activity-based costing is to first determine the overhead costs, then directly trace and distribute these costs to support and production activities, next allocate support activity costs to production activities, and finally apply the production activity costs to products. This sequence ensures that overhead costs are accurately assigned to products based on the activities they require.

Which of the Following Is the Correct Order for Allocating