Normal costing uses actual direct material and direct labor costs,plus an amount representing "normal"

Question

Quizplus · Accepted Answer

Normal costing involves adding an estimated amount of manufacturing overhead to actual direct material and direct labor costs to determine the total cost of a product. This estimated amount is known as the "normal" amount of manufacturing overhead and is based on predetermined overhead rates or other allocation methods.

Normal Costing Uses Actual Direct Material and Direct Labor Costs,plus