Match each item with the correct statement below.
-An overhead rate computed using estimated data
A)predetermined overhead rate
B)plantwide overhead rate
C)departmental overhead rate
D)overhead variance
E)overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold

Question

Quizplus · Accepted Answer

A predetermined overhead rate is computed in advance for the upcoming period using estimated data.

Answer: B
 A plantwide overhead rate applies one overhead rate to the entire plant based on the estimated total amount of overhead and the estimated activity level.

Answer: C
 A departmental overhead rate applies overhead to a specific department based on that department's estimated total amount of overhead and estimated activity level.

Answer: D
 Overhead variance refers to the difference between actual overhead incurred during a period and the amount of overhead charged to production.

Answer: E
 Overapplied overhead occurs when the actual overhead incurred is less than the amount of overhead charged to production.

Answer: F
 Underapplied overhead occurs when the actual overhead incurred is greater than the amount of overhead charged to production.

Answer: G
 Applied overhead refers to the amount of overhead assigned or allocated to a particular job or product.

Answer: H
 The normal cost of goods sold is the actual cost of goods sold, including the actual amount of overhead incurred during the period.

Match Each Item with the Correct Statement Below