A costing system that uses actual costs for direct materials and labor and predetermined overhead rates to apply overhead is called a(n)

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02-07-2021
Business

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A costing system that uses actual costs for direct materials and labor and predetermined overhead rates to apply overhead is called a(n)

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topeadeniran2 topeadeniran2 · Answer 1 · 2021-07-07T02:54:01+02:00

Answer: normal costing system

Explanation:

A costing system which uses the actual costs for direct materials and the labor and predetermined overhead rates to apply overhead is referred to as the normal costing system.

Normal costing system is the cost allocation method whereby cost is assigned to products which are based on the labor, materials, and the overhead which are used in their production.