The overhead cost applied to a job is equal to the budgeted overhead rate times the budgeted amount of the cost driver.

Name: The overhead cost applied to a job is equal to the budgeted overhead rate times the budgeted amount of the cost driver.
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Question

Quizplus · Accepted Answer

The overhead cost applied to a job is typically calculated by multiplying the actual amount of the cost driver used by the job with the predetermined overhead rate, not the budgeted amount of the cost driver.

The Overhead Cost Applied to a Job Is Equal to the Budgeted