When calculating the departmental overhead rate,the numerator should be?
A)The total estimated departmental overhead cost.
B)The total amount of departmental allocation base.
C)The total plantwide budgeted overhead cost.
D)The actual quantity of the departmental allocation base used by the job.
E)The actual department direct labor hours.

Question

Quizplus · Accepted Answer

The departmental overhead rate is calculated by dividing the estimated departmental overhead costs by the estimated amount of departmental allocation base. Therefore, the numerator should be the total estimated departmental overhead cost.

When Calculating the Departmental Overhead Rate,the Numerator Should Be