Asked by Kaila Martinez on Jul 02, 2024
Verified
If a job is not completed at year end, then no manufacturing overhead cost would be applied to that job when a predetermined overhead rate is used.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead to individual units of production, based on a chosen activity base.
Manufacturing Overhead Cost
Every cost linked to the production process that is not direct materials or direct labor expenses.
- Absorb the techniques for computing and applying predetermined overhead rates within job costing frameworks.
Verified Answer
AW
Alicia Woodruff6 days ago
Final Answer :
False
Explanation :
When a predetermined overhead rate is used, manufacturing overhead costs are applied to jobs throughout the year based on the rate, regardless of whether the job is completed by year end.
Learning Objectives
- Absorb the techniques for computing and applying predetermined overhead rates within job costing frameworks.
Related questions
Dearden Corporation Uses a Job-Order Costing System with a Single ...
Which of the Following Is the Correct Formula to Compute ...
At the End of June,job Cost Sheets for Kennedy Manufacturing ...
Hultquist Corporation Has Two Manufacturing Departments--Forming and Customizing ...
Vasilopoulos Corporation Has Two Production Departments, Casting and Assembly ...