When Raw Materials, Work in Process, and Finished Goods are recorded and carried at their standard cost, the fixed overhead applied to work in process is calculated by multiplying the predetermined overhead rate by the actual direct labor-hours worked.

Question

Quizplus · Accepted Answer

When using standard costing, the fixed overhead applied to work in process is calculated by multiplying the predetermined overhead rate by the standard direct labor-hours allowed for the actual output, not the actual direct labor-hours worked.

When Raw Materials, Work in Process, and Finished Goods Are