In a job order costing system,a manufacturing firm typically uses a cost driver rate to estimate the ________ used for a job.
A)direct materials
B)direct labor
C)variable overhead
D)total costs

Question

Quizplus · Accepted Answer

In a job order costing system, a cost driver rate is typically used to estimate the variable overhead costs used for a job. This is because variable overhead costs are dependent on the level of activity or usage of the cost driver, such as machine hours or direct labor hours. Direct materials and direct labor costs are usually directly traced to a job, while total costs include both direct costs and overhead costs.

In a Job Order Costing System,a Manufacturing Firm Typically Uses