[amp_mcq option1=”manufacturing overhead applied” option2=”labour overhead applied” option3=”cost overhead applied” option4=”budget overhead applied” correct=”option1″]<\/p>\n
The correct answer is A. manufacturing overhead applied.<\/p>\n
Manufacturing overhead is a type of indirect cost that is incurred in the manufacturing process but cannot be easily traced to a specific product. It includes costs such as depreciation on factory equipment, indirect labor, and factory utilities.<\/p>\n
In normal costing, manufacturing overhead is allocated to products based on a predetermined rate. This rate is calculated by dividing the estimated annual manufacturing overhead costs by the estimated annual production volume. The allocated manufacturing overhead is then added to the direct costs of the product to determine the total cost of the product.<\/p>\n
The other options are incorrect because they do not accurately describe the process of allocating manufacturing overhead in normal costing.<\/p>\n
Option B, labour overhead applied, is incorrect because it suggests that manufacturing overhead is a type of labor cost. However, manufacturing overhead is an indirect cost, not a direct cost.<\/p>\n
Option C, cost overhead applied, is incorrect because it is too general. It does not specify that the cost being applied is manufacturing overhead.<\/p>\n
Option D, budget overhead applied, is incorrect because it suggests that the manufacturing overhead being applied is based on the budgeted manufacturing overhead costs, not the actual manufacturing overhead costs.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”manufacturing overhead applied” option2=”labour overhead applied” option3=”cost overhead applied” option4=”budget overhead applied” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-54800","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n