Which of the following provides an explanation of why the variable overhead rate is separated from the fixed overhead rate in standard costing?
A) There is no justifiable reason; their separation is merely to simplify entries.
B) Both calculations divide by the same direct labor hours, but the numerator is different for each calculation.
C) The variable overhead rate is calculated using actual direct labor hours, whereas the fixed overhead rate is calculated using normal capacity direct labor hours.
D) The behavior of costs, used for computing variable overhead rate and fixed overhead rate, differs.
D
You might also like to view...
Existing sources of pollution are required to install the best available technology to obtain a permit to release substances into a water source.
Answer the following statement true (T) or false (F)
Persons who lack mental capacity at the time they enter into a contract may avoid liability under the agreement
Indicate whether the statement is true or false
Benjamin, who files as a single taxpayer, has $359,900 taxable income in 2019. Compute his regular tax liability.
A. $125, 965 B. $97,547 C. $101,159 D. None of the above
Cloud resources are pooled because many different organizations use the same physical hardware
Indicate whether the statement is true or false