Which of the following statements is correct? A. To calculate the decrease to...
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Accounting
Which of the following statements is correct?
A.
To calculate the decrease to WIP for allocated MOH costs, the POHR is multiplied by the actual amount of the allocation based used by the cost object.
B.
If the over/underallocated MOH is fairly large and the majority of the units have not been sold, the balance in MOH should be prorated between WIP, FG, and COGS.
C.
If MOH is overallocated to a job that has been sold, and the company calculates sales price by marking up job costs, the job will likely be underpriced.
D.
Number of units is typically an appropriate allocation base for MOH because the companys products consume equal overhead resources.
E.
The formula to arrive at the POHR is total actual manufacturing overhead divided by total estimated allocation base.
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