In a Traditional Simple Costing System, a Plant-Wide Cost Pool

Multiple Choice

In a traditional simple costing system, a plant-wide cost pool accumulates factory-wide Manufacturing Overhead (MOH) . What is the correct formula to calculate the plant-wide rate?

A) Total MOH costs in a plant-wide cost pool × Total quantity of a single driver
B) Total MOH costs in a plant-wide cost pool/Total quantity of a single driver
C) Total quantity of a single driver + Total MOH costs in a plant-wide cost pool
D) Total quantity of a single driver/Total MOH costs in a plant-wide cost pool