Which of the following represents the factory overhead applied to a product?
A) predetermined factory overhead rate times estimated activity base
B) actual factory overhead rate times estimated activity base
C) predetermined factory overhead rate times actual activity base
D) actual factory overhead rate times actual activity base

Question

Quizplus · Accepted Answer

The correct method for applying factory overhead to a product involves using the predetermined factory overhead rate multiplied by the actual activity base. This approach allows for the allocation of overhead costs to products based on actual usage of the activity base, while using a rate determined from budgeted figures to ensure consistency and predictability in costing.

Which of the Following Represents the Factory Overhead Applied to a Product