The standard overhead cost assigned to each unit of product manufactured is called the
A)total manufacturing cost.
B)predetermined overhead cost.
C)applied overhead cost.
D)estimated overhead cost.

Question

Quizplus · Accepted Answer

The standard overhead cost assigned to each unit of product manufactured is called the applied overhead cost. Predetermined overhead cost is an estimated amount of overhead that is determined in advance of the actual overhead costs being incurred. Estimated overhead cost is a projection of what the overhead costs will be for a given period, based on historical data and expectations for the future. Total manufacturing cost includes both direct and indirect materials, direct and indirect labor, and overhead costs.

The Standard Overhead Cost Assigned to Each Unit of Product