How are costs assigned in a normal cost system?
A)actual direct materials, actual direct labour, and budgeted manufacturing overhead
B)actual direct materials, actual direct labour, and actual manufacturing overhead
C)budgeted direct materials, standard direct labour, and standard manufacturing overhead
D)budgeted direct materials, actual direct labour, and standard manufacturing overhead

Question

Quizplus · Accepted Answer

In a normal cost system, costs are assigned using actual direct materials, actual direct labor, and budgeted manufacturing overhead rates to estimate the overhead costs. This approach combines actual costs for direct materials and labor with estimated overhead to assign costs to products.

How Are Costs Assigned in a Normal Cost System