An Activity-Based Cost (ABC) Driver Applies Factory Overhead to Products

Multiple Choice

An activity-based cost (ABC) driver applies factory overhead to products or services according to the:

A) Activity output as measured by the units produced.
B) Activity level of hours of direct labor.
C) Resource demands/resource consumption of the firm's outputs (goods or services produced) .
D) Budgeted activity level for the period.
E) Standard machine hours allowed for good output produced during the period.