Question
A company has 5 production cost centers. Manufacturing overhead is assigned to work-in-process inventory by the use of overhead cost rates. Which of the following
A company has 5 production cost centers. Manufacturing overhead is assigned to work-in-process inventory by the use of overhead cost rates. Which of the following best describes how the overhead cost rates should be calculated?
Select one:
a. Number of units produced divided by the total cost center overhead
b. Number of units produced multiplied by the unit overhead cost
c. Total indirect costs for the business divided by the total number of units produced
d. Overhead costs for each cost center divided by activity levels of the relevant cost center
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