The budgeted factory overhead rate is computed as ________.

Question

Quizplus · Accepted Answer

The budgeted factory overhead rate is calculated by dividing the total budgeted factory overhead by the total budgeted cost driver activity. It helps to allocate overhead costs to products or services accurately. Option A is incorrect because it uses actual overhead and actual production in units. Option B is incorrect because it uses actual overhead and actual cost driver activity. Option C is incorrect because it uses budgeted overhead and actual cost driver activity.

The Budgeted Factory Overhead Rate Is Computed as ________