LO 4.4Assigning indirect costs to specific jobs is completed by which of the following?

applying the costs to manufacturing overhead

using the predetermined overhead rate

using the manufacturing costs incurred

applying the indirect labor to the work in process inventory

using the predetermined overhead rate

Explanation:

The indirect cost is also known as the overhead cost. The overhead cost are those cost which is related to the factory expenses like - depreciation, property taxes, utility expense, rent expense, repairs expense, indirect labor, and indirect material cost, etc

As we know

Predetermined overhead rate = (Total estimated manufacturing overhead) : (estimated direct labor-hours) or (estimated machine labor-hours)

As the case maybe

By using the predetermined we can easily allocate the indirect cost to the specific cost