Using normal costing, which of the following is false about actual overhead? Select one:a. It is separated into many smaller accounts, such as indirect labor, supplies, etc. b. None of these. c. It is reconciled at the end of a period with applied overhead. d. Actual overhead is recorded to the overhead control account during the period. e. All of these are correct.

Question

Messiah Terrell

Business

27 November, 03:16

Using normal costing, which of the following is false about actual overhead? Select one:a. It is separated into many smaller accounts, such as indirect labor, supplies, etc. b. None of these. c. It is reconciled at the end of a period with applied overhead. d. Actual overhead is recorded to the overhead control account during the period. e. All of these are correct.

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Answers (1)

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Donna Christian · Answer 1

d. Actual overhead is recorded to the overhead control account during the period.

Explanation:

Actual overhead -

It is the indirect cost of the factory which have been incurred.

The example of actual overhead costs are as follows -

Factory depreciation, Equipment maintenance, Factory rent, Production supplies, Factory property taxes, Production supervisor salaries

hence, from the given options, the false statement is (d).