The Manufacturing Overhead Applied to Work-In-Process Inventory by a Company

Multiple Choice

The manufacturing overhead applied to Work-in-Process Inventory by a company that uses standard costing would be computed as:

A) actual hours times a predetermined (standard) overhead rate.
B) standard hours times a predetermined (standard) overhead rate.
C) actual hours times an actual overhead rate.
D) standard hours times an actual overhead rate.
E) $0, because users of standard costing do not apply overhead to work in process.