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6-Which of the following best describes costs assigned to the product under the

ID: 2388423 • Letter: 6

Question

6-Which of the following best describes costs assigned to the product under the absorption costing method? Direct labor (DL) Direct materials (DM) Variable selling and administrative Variable manufacturing overhead Fixed selling and administrative Fixed manufacturing overheaF
a. DL, DM, variable selling and administrative costs and variable manufacturing overhead.
b. DL, DM, and variable manufacturing overhead. c. DL, DM, variable manufacturing overhead, and fixed manufacturing overhead.
d. DL and DM.
e. DL, DM, fixed selling and administrative, and fixed manufacturing overhead.

Explanation / Answer

c. DL, DM, variable manufacturing overhead, and fixed manufacturing overhead.

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