One problem with using an actual cost system to allocate overhead is that: the o
ID: 1193269 • Letter: O
Question
One problem with using an actual cost system to allocate overhead is that:
the overhead allocation rate fluctuates as the actual allocation base, such as direct labor fluctuates
the overhead allocation rate fluctuates as actual overhead fluctuates
managers must wait until the end of an accounting period to receive information
All of these answers are correct
A.the overhead allocation rate fluctuates as the actual allocation base, such as direct labor fluctuates
B.the overhead allocation rate fluctuates as actual overhead fluctuates
C.managers must wait until the end of an accounting period to receive information
D.All of these answers are correct
Explanation / Answer
The correct answer is A) One problem with using an actual cost system to allocate overhead is that the overhead allocation rate fluctuates as the actual allocation base, such as direct labor fluctuates.
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