chapter 1 formula Flashcards
1
Q
The “a” in Y= a + bx represents the estimated _____________.
total manufacturing overhead cost
allocation base
variable manufacturing cost per unit
total fixed manufacturing cost
A
total fixed manufacturing cost
2
Q
Most companies use predetermined rather than actual overhead rates.
True
False
A
True
3
Q
Equipment hours would be a reasonable cost driver for which of the following businesses?
An automated plywood manufacturing plant with just a few employees
A sandwich shop
A manufacturer that assembles computers from parts purchased from suppliers
A retail grocery store
A
An automated plywood manufacturing plant with just a few employees
