Determining the standard fixed factory overhead cost applied to production for a
ID: 2526915 • Letter: D
Question
Determining the standard fixed factory overhead cost applied to production for a period involves all of the following essential elements except:
The actual amount of fixed overhead cost incurred during the period.
A cost driver (or drivers) for applying the fixed overhead.
The standard fixed overhead application rate.
An output level, as reflected by the quantity of the cost driver for applying the fixed overhead (i.e., the denominator activity level for the period).
The total budgeted fixed overhead cost for the period.
The actual amount of fixed overhead cost incurred during the period.
A cost driver (or drivers) for applying the fixed overhead.
The standard fixed overhead application rate.
An output level, as reflected by the quantity of the cost driver for applying the fixed overhead (i.e., the denominator activity level for the period).
The total budgeted fixed overhead cost for the period.
Explanation / Answer
The answer to the question will be D. option.
Since, An output level, as reflected by the quantity of the cost driver for applying the fixed overhead (i.e., the denominator activity level for the period) is not included under standard fixed factory overhead cost.
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