When calculating the total amount of manufacturing overhead to allocate to a particular job, the company would multiply each departmental overhead rate by ________ and then ________ together the allocated amounts from each department.
A) the actual amount of the departmental allocation base used by the job; add
B) the actual amount of the plantwide allocation base used by the job; add
C) the actual amount of the departmental allocation base used by the job; multiply
D) the actual amount of the plantwide allocation base used by the job; multiply

Question

Quizplus · Accepted Answer

The correct approach involves multiplying the actual amount of the departmental allocation base used by the job by each departmental overhead rate and then adding together these allocated amounts from each department to get the total manufacturing overhead allocated to the job.

When Calculating the Total Amount of Manufacturing Overhead to Allocate