Dentlinger Company uses a job-order cost system and had the following data available for 20X2.

-To apply the budgeted overhead to a job, the budgeted overhead rate is multiplied by the
A) actual cost-driver data.
B) budgeted cost-driver data.
C) actual factory-overhead costs.
D) estimated factory-overhead costs.

Question

Dentlinger Company uses a job-order cost system and had the following data available for 20X2.
 
-To apply the budgeted overhead to a job, the budgeted overhead rate is multiplied by the
A) actual cost-driver data. 
B) budgeted cost-driver data. 
C) actual factory-overhead costs. 
D) estimated factory-overhead costs.

Quizplus · Accepted Answer

The budgeted overhead rate is applied to the actual cost-driver data to allocate overhead costs to a job accurately.

Dentlinger Company Uses a Job-Order Cost System and Had the Following