# Normal Costing: Definition, Example & Formula

Instructions:

question 1 of 3

### Pete uses number of pizzas cooked as his allocation base for normal costing. His budgeted overhead expense is \$100,000 and he is budgeted to cook 25,000 pizzas. What is his standard overhead rate for each pizza cooked?

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### 2. A manufacturing facility used \$10,000 in direct materials and \$2,000 in direct labor expense for a production run. 100 direct labor hours were worked. Overhead is allocated at a rate of \$5.00 per hour worked. What is the cost of this production run using normal costing?

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The quiz/worksheet combo helps you check your knowledge of normal costing. The meaning of this term and its formula are topics on the quiz.

## Quiz & Worksheet Goals

You can see how much you know about:

• An advantage to using normal costing
• Using the normal costing formula
• A disadvantage of using normal costing

## Skills Practiced

• Knowledge application - use your knowledge to answer questions about the pros and cons of normal costing
• Reading comprehension - ensure that you draw the most important information from the lesson on normal costing
• Information recall - access the knowledge you have gained about how to use the normal costing formula