Answer:
A normal cost system applies overhead to jobs ________.
by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job.
Step-by-step explanation:
To compute the predetermined overhead rate, divide the estimated overhead for the period by the estimated allocation base usage. When applying overhead to the job, the predetermined overhead rate is used to multiply the actual amount of the allocation base consumed or incurred by the particular job. The value determined from the above computation is termed the overhead applied cost. It may be more or less than actual overhead incurred. This gives rise to overapplied or underapplied overhead.