Would you expect the amount of overhead applied for a period to equal the actual overhead costs of the period? Why or why not?

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01-01-2021
Business

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Would you expect the amount of overhead applied for a period to equal the actual overhead costs of the period? Why or why not?

Sagot :

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AFOKE88 AFOKE88 · Answer 1 · 2021-01-02T20:22:38-05:00

Answer:

No.

Explained below

Explanation:

No, I wouldn't expect the amount of overhead applied for a period to equal the actual overhead costs of the period. This is because, due to the fact that the predetermined overhead rate is purely an estimate of what costs are projected to be established before the period begins, it means that there will always be a difference between the predetermined costs and the actual overhead costs .

Sagot :

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