Asked by
Griffin Parriott
on Nov 19, 2024Verified
Which of the following statements is correct in describing manufacturing overhead?
A) Manufacturing overhead when combined with direct materials cost forms conversion cost.
B) Manufacturing overhead consists of all manufacturing cost except for prime cost.
C) Manufacturing overhead is a period cost.
D) Manufacturing overhead when combined with direct labor cost forms prime cost.
Prime Cost
The sum of direct materials cost and direct labor cost, representing the direct production costs.
- Understand the principles of manufacturing overhead and the method of its allocation to products.
Verified Answer
JL
Learning Objectives
- Understand the principles of manufacturing overhead and the method of its allocation to products.
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