In a process costing system, the manufacturing overhead (or factory OH) is usually applied using
A)Predetermined overhead rate
B)An actual overhead rate
C)A conversion overhead rate
D)An indirect labor rate

Question

Quizplus · Accepted Answer

Predetermined overhead rates are commonly used in process costing systems to apply manufacturing overhead costs to products. This method involves estimating the overhead costs and the base for allocation (such as machine hours or labor hours) before the period begins, allowing for more consistent and timely application of overhead costs throughout the accounting period.

In a Process Costing System, the Manufacturing Overhead (Or Factory