When using normal costing, the total production cost of a job is composed of:
A)direct material and direct labor, only.
B)direct material, direct labor, manufacturing overhead, and outlays for selling costs.
C)direct material, direct labor, manufacturing overhead, and outlays for both selling and
D)direct material, direct labor, and applied manufacturing overhead.
E)direct material, direct labor, and actual manufacturing overhead.

Question

Quizplus · Accepted Answer

Normal costing includes direct material, direct labor, and applied manufacturing overhead, where overhead is estimated and applied based on a predetermined rate.

When Using Normal Costing, the Total Production Cost of a Job