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 base used by the job; add
B) the actual amount of the plant-wide allocation base used by the job; add
C) the actual amount of the departmental allocation base used by the job; multiply
D) the actual amount of the plant-wide allocation base used by the job; multiply
E) the actual amount of the activity allocation base used by the job; add

Question

Quizplus · Accepted Answer

The company multiplies each departmental overhead rate by the actual amount of the departmental allocation base used by the job and then adds together the allocated amounts from each department to get the total manufacturing overhead for the job.

When Calculating the Total Amount of Manufacturing Overhead to Allocate