Determining the numerator and denominator when calculating the budgeted fixed-MOH rate
A)can vary for each company and each department and will have no impact on the financial statements.
B)can vary between departments and will impact the financial statements.
C)will not matter, and departments can choose whichever method will increase operating income.
D)will not vary, and all companies and departments will use the same cost drivers.

Question

Quizplus · Accepted Answer

The numerator and denominator used in calculating the budgeted fixed-MOH rate can vary between departments, and these variations can impact the financial statements by affecting the allocation of overhead costs.

Determining the Numerator and Denominator When Calculating the Budgeted Fixed-MOH