Which of the following is the assignment process used with normal costing?
A) Actual direct materials, actual direct labor and actual overhead cost are assigned to products.
B) Actual direct materials cost is assigned to products, but direct labor and overhead costs are assigned using predetermined rates.
C) Actual direct labor cost is assigned to products, but direct material and overhead costs are assigned using predetermined rates.
D) Actual direct material and direct labor costs are assigned to products, but overhead costs are assigned using predetermined rates.
E) All manufacturing costs are assigned using predetermined rates.

Question

Quizplus · Accepted Answer

Normal costing assigns actual direct material and labor costs to products, but overhead costs are assigned using predetermined rates. This is because overhead costs can be difficult to trace directly to specific products and are often calculated based on a predetermined allocation rate.

Which of the Following Is the Assignment Process Used with Normal