A customer wants to allocate overhead costs to a production order. How can the customer achieve that? Note: There are 3 correct answers to this question.

Routings and work centers define the activities (e.g., machine time, labor) required for production. These activities are associated with activity types, which carry rates that include primary costs and potentially overheads, thus transferring costs to the production order.

Assessment cycles are used for periodic allocation of costs from cost centers to other cost objects, but not typically for directly applying overhead to individual production orders.

Templates allow for the flexible allocation of overhead costs based on specific business processes or characteristics of the production order, offering a dynamic way to assign costs.

A costing sheet is a central configuration tool in product costing that defines how overhead surcharges are calculated and applied to material and activity costs on a production order.

Indirect activity allocation is used for allocating activity costs that cannot be directly measured, usually from sender cost centers to receiver cost centers or orders, but is distinct from applying overheads via costing sheets or templates to a production order.