Multiple Choice
Which of the following formula is used by Duration-Based Costing (DBC) to assign the overhead costs to a particular product?
A) Overhead cost per unit = Units of product produced at practical capacity ÷ Activity rate
B) Overhead cost per unit = Total overhead cost ÷ Activity rate
C) Overhead cost per unit = Overhead rate × Capacity cost rate for a particular product
D) Overhead cost per unit = Overhead rate × Cycle time for a particular product
Correct Answer:
Verified
Correct Answer:
Verified
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