When calculating the total amount of manufacturing overhead to allocate to a particular job, the company would multiply each departmental overhead rate by ________ and then ________ together the allocated amounts from each department.
A)the actual amount of the departmental allocation based used by the job; multiply
B)the actual amount of the plantwide allocation based used by the job; add
C)the actual amount of the departmental allocation based used by the job; add
D)the actual amount of the plantwide allocation based used by the job; multiply

Question

Quizplus · Accepted Answer

When allocating manufacturing overhead, each departmental overhead rate is multiplied by the actual amount of the departmental allocation based used by the job. The allocated amounts from each department are then added together to determine the total amount of manufacturing overhead to allocate to the job.

When Calculating the Total Amount of Manufacturing Overhead to Allocate