in a process costing system, manufacturing overhead is assigned to work in process by
A)Department based on actual overhead costs incurred
B)Department based on predetermined overhead rates
C)Job based on actual overhead costs incurred
D)Job based on predetermined overhead rates

Question

Quizplus · Accepted Answer

In a process costing system, manufacturing overhead is typically assigned to work in process by department based on predetermined overhead rates. This method allows for more consistent and predictable allocation of overhead costs throughout the production process, as actual overhead costs can fluctuate. Predetermined rates are calculated based on estimated costs and activity levels, making it easier to assign overhead costs to products as they move through different departments.

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