Which is the correct formula for computing the overhead rate

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Problem 1: Which is the correct formula for computing the overhead rate?

select correct one

A. estimated use of cost driver for production / estimated overhead for activity

B. estimated overhead for the product / estimated use of the cost driver for the activity

C. estimated use of the cost driver for the production / estimated overhead for the activity

D. estimated overhead for the activities / estimated use of the cost driver for the activity

Problem 2: Activity-based costing is preferable in a system:

select correct one

A. When multiple product have similar product volume of and cost

B. With a large direct labor cost as a percentage of total product cost

C. With multiple diverse products

D. Where management needs to support an increase in sales price

Reference no: EM132723683

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