What is the term for a costing system that uses actual costs for direct materials and labour and predetermined overhead rates to apply overhead?
A)actual costing system
B)normal costing system
C)standard costing system
D)activity-based costing system

Question

Quizplus · Accepted Answer

The term for a costing system that uses actual costs for direct materials and labour and predetermined overhead rates to apply overhead is a normal costing system. In this system, actual costs for direct materials and labour are recorded, and overhead is allocated using a predetermined overhead rate based on estimated overhead costs and a selected cost driver, such as machine hours or direct labour hours.

What Is the Term for a Costing System That Uses