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Commerce · Q660

Costing

Graduate and Post Graduate · Commerce · question 660

Q660

In normal costing, manufacturing overhead allocated is also called

A.
manufacturing overhead applied
Answer
B.
labour overhead applied
C.
cost overhead applied
D.
budget overhead applied

Answer: Option A

Solution

Answer: Option A
Solution:
In normal costing, manufacturing overhead allocated is also called manufacturing overhead applied. Manufacturing overhead is all indirect costs incurred during the production process. This overhead is applied to the units produced within a reporting period.