When calculating a departmental overhead rate, the numerator should be the
A) total estimated departmental overhead cost pool.
B) total estimated amount of the departmental allocation base.
C) total estimated amount of manufacturing overhead for the factory.
D) actual quantity of the departmental allocation base used by the job.

Question

Quizplus · Accepted Answer

The numerator should be the total estimated departmental overhead cost pool, which includes all departmental costs that are not associated with direct materials or direct labor. This includes costs such as rent, utilities, and equipment maintenance, among others.

When Calculating a Departmental Overhead Rate, the Numerator Should Be