Manufacturers follow four steps to implement a manufacturing overhead allocation system. In the last step, the company estimates the total amount of manufacturing overhead costs for the year.

Question

Quizplus · Accepted Answer

The last step involves allocating the estimated manufacturing overhead costs to individual units of production based on the allocation base, not estimating the total amount of manufacturing overhead costs for the year, which is done in an earlier step.

Manufacturers Follow Four Steps to Implement a Manufacturing Overhead Allocation