The normal cost of overhead activities includes:
A)costs of resources committed to the particular activity.
B)amounts for additional overtime payments.
C)allowances for idle time.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The normal cost of overhead activities includes costs of resources committed to the particular activity. This means the cost of the resources, such as labor and materials, that are dedicated to a specific overhead activity are included in the normal costs. Additional overtime payments and allowances for idle time are not considered normal costs of overhead activities, as they are not directly related to the resources committed to the activity.

The Normal Cost of Overhead Activities Includes