The Purpose of an Overhead Application Rate Is To

Multiple Choice

The purpose of an overhead application rate is to:

A) Assign a portion of indirect manufacturing costs to each product manufactured.
B) Determine the type and amount of costs to be debited to the Manufacturing Overhead account.
C) Charge the Work in Process Inventory account with the appropriate amount of direct manufacturing costs.
D) Allocate manufacturing overhead to expense in proportion to the number of units manufactured during the period.