The correct answer is "cost driver in each product".

Here's the step-by-step reasoning:

1. Overhead costs are indirect costs that cannot be directly attributed to a specific product. Examples include utilities, rent, and salaries for employees not directly involved in production.

2. A cost driver is any factor that causes a change in the cost of an activity. For example, the number of machine hours used, the number of labor hours used, or the amount of materials used can all be cost drivers.

3. To assign overhead costs to a product, you need to identify the cost driver that has the most significant impact on the overhead costs.

4. Once you've identified the cost driver, you can calculate the cost driver rate. This is done by dividing the total overhead costs by the total quantity of the cost driver.

5. Finally, you multiply the cost driver rate by the number of units of the cost driver in each product. This gives you the overhead cost per product.

So, the blank in the question should be filled with "cost driver in each product".

Question

The correct answer is "cost driver in each product".

Here's the step-by-step reasoning:

1. Overhead costs are indirect costs that cannot be directly attributed to a specific product. Examples include utilities, rent, and salaries for employees not directly involved in production.

2. A cost driver is any factor that causes a change in the cost of an activity. For example, the number of machine hours used, the number of labor hours used, or the amount of materials used can all be cost drivers.

3. To assign overhead costs to a product, you need to identify the cost driver that has the most significant impact on the overhead costs.

4. Once you've identified the cost driver, you can calculate the cost driver rate. This is done by dividing the total overhead costs by the total quantity of the cost driver.

5. Finally, you multiply the cost driver rate by the number of units of the cost driver in each product. This gives you the overhead cost per product.

So, the blank in the question should be filled with "cost driver in each product".

Knowee AI · Accepted Answer

The correct answer is "cost driver in each product".

Here's the step-by-step reasoning:

1. Overhead costs are indirect costs that cannot be directly attributed to a specific product. Examples include utilities, rent, and salaries for employees not directly involved in production.

2. A cost driver is any factor that causes a change in the cost of an activity. For example, the number of machine hours used, the number of labor hours used, or the amount of materials used can all be cost drivers.

3. To assign overhead costs to a product, you need to identify the cost driver that has the most significant impact on the overhead costs.

4. Once you've identified the cost driver, you can calculate the cost driver rate. This is done by dividing the total overhead costs by the total quantity of the cost driver.

5. Finally, you multiply the cost driver rate by the number of units of the cost driver in each product. This gives you the overhead cost per product.

So, the blank in the question should be filled with "cost driver in each product".

Multiple Choice QuestionTo assign overhead costs to a product, multiply the cost driver rates by the number of units of the Blank______.Multiple choice question.plantwide ratecost activitycost pools in each productcost driver in each produc

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