Question

In a normal cost system, factory overhead is applied

Answer 1

Answer:

Multiply the overhead allocation rate by the actual activity level to get the applied overhead for your cost object. If your overhead allocation rate is $100 per machine hour, then multiply $100 times the number of machine hours for a particular product to get its applied overhead

Explanation:

Examples of factory overhead costs include: indirect materials, indirect labor, depreciation of the factory equipment and plant, amortization of patents, the cost of small tools used, factory utilities, insurance on the factory and equipment, property taxes on plant and equipment, property taxes on materials and goods