Asked by Perla Alvarado on Jul 03, 2024
Verified
When overheads are over-allocated, the actual overheads incurred are greater than those allocated.
Over-Allocated Overheads
A situation where the allocated overhead costs exceed the actual overhead costs incurred.
Actual Overheads
The total amount of indirect costs that a business incurs during production, which may include costs related to utilities, rent, and salaries.
- Familiarize yourself with the implementation of fixed overhead rates in determining costs and dealing with manufacturing overheads.
Verified Answer
FD
Francesco DimaggioJul 08, 2024
Final Answer :
False
Explanation :
When overheads are over-allocated, it means that the amount of overheads allocated to products or services is greater than the actual overheads incurred.
Learning Objectives
- Familiarize yourself with the implementation of fixed overhead rates in determining costs and dealing with manufacturing overheads.
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