Question: In a normal costing system, a. indirect costs are recorded to jobs based on the predetermined overhead rate times the actual quantity of the activity

In a normal costing system,

a. indirect costs are recorded to jobs based on the predetermined overhead rate times the actual quantity of the activity base. (this is incorrect)

b. actual manufacturing overhead costs are recorded in the respective Manufacturing Overhead Expense account as incurred.

c. actual manufacturing overhead costs are recorded as a cost to the specific jobs as incurred.

d. applied manufacturing overhead costs are recorded as debits to the manufacturing overhead account.

Which one of the following is a common activity base used to calculate the predetermined overhead rate?

a. the number of jobs completed

b. indirect labor costs

c. direct labor dollars (this is incorrect)

d. number of months to complete jobs

I have marked the options that are 100% incorrect. Do not give that as answers. Will give thumbs up, Just need correct answers

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