COMMERCE 2AB3 Lecture 4: Chapter 4 Summary
Normal costing is also called the traditional costing system.
The normal costing allocation rate is also called the plant-wide
allocation rate or the single rate or the predetermined
overhead rate
Allocated overhead is also called the assigned overhead or
charged overhead or applied overhead
Applied/Charged/Allocated/Assigned/Predetermined
Overhead Rate =
Total Estimated or Budgeted Overhead
Total Estimated or Budgeted Quantity of the Cost Driver