Reference no: EM132632304

Problem 1: Underapplied and overapplied overhead arise because

A. overhead applied to the product during the year, based on an estimated overhead rate, is compared with actual overhead incurred

B. the overhead rate and the amount of the allocation base used by the product are both estimates

C. none of the above

D. the usage of the overhead allocation base by the product, e.g. machine hours is an estimate

Problem 2: Standards may be derived using:

A. the assistance of industrial engineers.

B. all of the options available.

C. Benchmarking

D. Historical data