Assume Machine Hours Are the Cost-Allocation Base for the Budgeted

Multiple Choice

Assume machine hours are the cost-allocation base for the budgeted rate for fixed overhead costs.The total fixed overhead cost applied to a product is the result of multiplying the ________ by the ________ for the product.

A) budgeted fixed overhead costs; percent of completion
B) actual fixed overhead rate; budgeted machine hours
C) budgeted fixed overhead costs; budgeted machine hours
D) budgeted fixed overhead rate; actual machine hours used