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?

How should unallocated fixed overhead costs be treated?

Allocated to finished goods and cost of goods sold
based on ending balances in the accounts.
Allocated to raw materials, work in process, and finished
goods, based on the ending balances in the accounts.
Recognized as an expense in the period in which they
are incurred.
Allocated to work in process, finished goods, and cost
of goods sold based on ending balances in the accounts.

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

(c) Unallocated fixed overhead costs are recognized as an
expense in the period in which they are incurred. Therefore, answers
(a), (b), and (d) are incorrect.

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