The correct answer is: B. manufacturing overhead applied.
In normal costing, budgeted rate is multiplied to an actual quantity, which have been used as allocation base to calculate manufacturing overhead applied.
Budgeted rate is the estimated amount of overhead per unit of activity. Actual quantity is the actual amount of activity that occurred during the period. Allocation base is the factor that is used to assign overhead costs to products or services.
Manufacturing overhead applied is the amount of overhead that is assigned to products or services during a period. It is calculated by multiplying the budgeted rate by the actual quantity of the allocation base.
The other options are incorrect because they do not accurately reflect the definition of manufacturing overhead applied.
- Budget overhead applied is not the same as budget overhead. Budget overhead is the estimated amount of overhead for a period. Manufacturing overhead applied is the amount of overhead that is assigned to products or services during a period.
- Labour overhead applied is not the same as manufacturing overhead applied. Labour overhead applied is the amount of overhead that is assigned to products or services based on the amount of labour that is used to produce them. Manufacturing overhead applied is the amount of overhead that is assigned to products or services based on the amount of activity that occurs during the period.
- None of the above is the correct answer because it does not accurately reflect the definition of manufacturing overhead applied.