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The budgeted factory overhead rate is computed as _____ a) budgeted factory overhead divided by actual cost drivers activity B) actual factory overhead dividend by actual cost driver activity C) budgeted factory overhead divided by budgeted cost driver activity D) actual factory overhead divided by actual production in units Rams Company had the following information Budgeted factory overhead $90,000 Actual factory overhead $107,000 Budgeted direct labor hours 100,000 Actual direct labor hours 107,000 Assume direct labor coats are the cost driver of factory overhead coats. The budgeted factory overhead rate it _____. A) 100 percent of direct labor cost B) 81 percent of direct labor coats C) 90 percent of direct labor costs D) 105 percent of direct labor costs To apply the budgeted overhead costs to a Job, the budgeted overhead rate is multiplied by the _____. A) .actual amount of cost driver used by the Job B) actual production in units C) expected production in units D) expected amount of cost driver used by the Job It a department identifies more than one cost driver for overhead cost, the department ideally should _____. A) put 80 percent of the cost into one pool and 20 percent into a second pool B) select a tingle cost driver C) create as many cost pools as there are cost driven D) allocate 80 percent of the costs with 20% of the cost drivers The cost driver chosen for applying factory overhead costs should be the cost driver that _____ A) incurs the least administrative costs B) is easiest to understand C) is easiest to calculate D) causes most of the overhead costs In practice, companies generally prorate overhead variances when it would materially affect _____ and _____. A) inventory valuations; stock option plans B) stock option plans; manager bonuses C) inventory valuations; manager bonuses D) inventory valuations; net income