Manufacturing overhead costs are applied to work in process on the basis of

A) actual hours worked.
B) standard hours allowed.
C) ratio of actual variable to fixed costs.
D) actual overhead costs incurred.

Question

Haylee Lewis · Accepted Answer

Final Answer : B, Explanation :  Manufacturing overhead costs are applied to work in process based on the standard hours allowed. This method helps to allocate overhead costs in a more accurate and consistent manner, rather than relying on actual hours worked which can be affected by factors such as worker efficiency and production delays.

Manufacturing overhead costs are applied to work in process on the basis of

A) actual hours worked.
B) standard hours allowed.
C) ratio of actual variable to fixed costs.
D) actual overhead costs incurred.

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Learning Objectives

Learning Objectives

Related questions

Manufacturing overhead costs are applied to work in process on the basis ofA) actual hours worked.B) standard hours allowed.C) ratio of actual variable to fixed costs.D) actual overhead costs incurred.

Definitions

Learning Objectives

Learning Objectives

Related questions

Manufacturing overhead costs are applied to work in process on the basis of

A) actual hours worked.
B) standard hours allowed.
C) ratio of actual variable to fixed costs.
D) actual overhead costs incurred.