When using a normal costing system,manufacturing overhead is allocated using the ________ manufacturing overhead rate and the ________ quantity of the allocation base.

Question

Quizplus · Accepted Answer

A normal costing system uses a predetermined overhead rate, which is calculated by dividing the estimated total manufacturing overhead cost for the period by the estimated total quantity of the allocation base. Therefore, manufacturing overhead is allocated using the budgeted overhead rate (not actual) and the actual quantity of the allocation base.

When Using a Normal Costing System,manufacturing Overhead Is Allocated Using