In a normal cost system,factory overhead is assigned to an overhead control account and then allocated to products and services.

Question

Quizplus · Accepted Answer

In a normal cost system, factory overhead is first accumulated in an overhead control account and then allocated to products and services based on a predetermined allocation rate. This is commonly done using methods such as direct labor hours, machine hours, or percentage of direct labor cost. Therefore, choice A is correct.

In a Normal Cost System,factory Overhead Is Assigned to an Overhead