Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 10 - No. 25)
What is the purpose of a manufacturing overhead rate?
To directly assign overhead costs to specific products.
To distribute overhead costs among all the products made.
To track the actual overhead costs incurred.
To eliminate overhead costs.
Explanation
Overhead rates are used to assign or distribute overhead costs to all the products made.
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