When calculating the total amount of manufacturing overhead to allocate to a particular job,the company would multiply each departmental overhead rate by ___________ and then _________ together the allocated amounts from each department.
A)the actual amount of the departmental allocation based used by the job; add
B)the actual amount of the plantwide allocation based used by the job; add
C)the actual amount of the departmental allocation based used by the job; multiply
D)the actual amount of the plantwide allocation based used by the job; multiply

Question

Quizplus · Accepted Answer

The correct approach is to multiply each departmental overhead rate by the actual amount of the departmental allocation base used by the job, and then add the allocated amounts from each department.

When Calculating the Total Amount of Manufacturing Overhead to Allocate