Normal Costing Uses

Multiple Choice

Normal costing uses

A) actual costs for direct materials, direct labour and variable and fixed overhead.
B) actual costs for direct materials, and direct labour, and a predetermined overhead rate for allocating variable and fixed overhead costs to production units.
C) actual costs for direct materials, direct labour and variable overhead, and a predetermined overhead rate for fixed overhead.
D) variable costing for direct materials, direct labour and variable overhead and a predetermined overhead rate for fixed overhead.