Total indirect cost in pool by an actual quantity of cost allocation base is used to calculate

A. actual manufacturing overhead rate

B. manufacturing overhead costs

C. overhead rate

D. direct rate

Answer: Option A

Solution(By Examveda Team)

Total indirect cost in pool by an actual quantity of cost allocation base is used to calculate actual manufacturing overhead rate. Costs that are outside of the manufacturing operations, such as marketing and general management, are expenses of the accounting period and are not applied or assigned to products.