In a process costing system, manufacturing overhead is added to Work in Process
A)using a predetermined overhead rate or based on actual overhead.
B)only in the final production department.
C)at the same rate as the direct materials are added.
D)only when Work in Process is transferred to Finished Goods.

Question

Quizplus · Accepted Answer

Manufacturing overhead is added to Work in Process using a predetermined overhead rate or based on actual overhead in a process costing system. This is done to allocate the indirect costs of production to each unit of product.

In a Process Costing System, Manufacturing Overhead Is Added to Work