Which of the following is not a reason to allocate overhead? Allocation is more accurate...
Which of the following is not a reason to allocate overhead?
Allocation is more accurate than tracing items directly to jobs.
Unlike direct materials and direct labor, the amount of overhead actually incurred may not be known at the time a job is being worked on.
Manufacturing overhead is an indirect cost that cannot be physically or economically traced back to a specific item.
Some overhead costs are seasonal, and should be spread over production for the entire year.
Homework Answers
The following is not a reason to allocate overhead:-
a) Allocation is more accurate than tracing items directly to jobs.
Allocating is not an accurate science, it is a rough estimation and it can never be accurate than the direct approach.
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Which of the following is not a reason to
allocate overhead?
Allocation is more accurate...
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I need help with all parts.
Martinez Foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours requi E (Click the icon to view the costs.) Read the requirements. At the beginning of 2018, the company expected to incur the following: Manufacturing overhead costs $ 850,000 Direct labor costs 1,490,000 Machine hours 85,000 hours Requirement 1. Compute Martinez' predetermined overhead allocation rate. At the end of 2018, the company had actually incurred:...
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