A company developed a standard cost for overhead.Which of the following involves standard development procedures that are similar to developing overhead standard costs?
A)Standard costs for materials
B)Total number of units to be produced
C)Predetermined overhead rates
D)Budgeted direct labor costs

Question

Quizplus · Accepted Answer

Predetermined overhead rates and standard overhead costs are developed using similar procedures, such as analyzing historical data and estimating future costs. Standard costs for materials and budgeted direct labor costs relate to direct costs, not overhead, while the total number of units to be produced is a measure of production volume, not cost.

A Company Developed a Standard Cost for Overhead