The overhead absorption rate used to allocate manufacturing overhead is calculated by: a. dividing the total actual manufacturing overhead costs by the total estimated quantity of the cost driver b. dividing the total estimated manufacturing overhead by the total actual quantity of the cost driver c. dividing the total estimated manufacturing overhead costs by the total

Principles of Accounting Volume 2
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 17MC: Under absorption costing, a unit of product includes which costs? A. direct material, direct labor,...
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The overhead absorption rate used to allocate manufacturing overhead is calculated by:

a.

dividing the total actual manufacturing overhead costs by the total estimated quantity of the cost driver

b.

dividing the total estimated manufacturing overhead by the total actual quantity of the cost driver

c.

dividing the total estimated manufacturing overhead costs by the total estimated quantity of the allocation base

d.

dividing the total estimated quantity of the cost driver by the total estimated manufacturing overhead costs

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