Assigning manufacturing overhead to a specific job is complicated by all of the below except:
A) Manufacturing overhead is an indirect cost that is either impossible or difficult to trace to a particular job.
B) Manufacturing overhead is incurred only to support some jobs.
C) Manufacturing overhead consists of both variable and fixed costs.
D) The average cost of actual fixed manufacturing overhead expenses will vary depending on how many units are produced in a period.

Question

Quizplus · Accepted Answer

Manufacturing overhead is not only incurred to support some jobs, it is also incurred to support the overall manufacturing process. Therefore, assigning it to a specific job can be complicated as it may involve allocating the overhead based on various factors such as machine usage, direct labor hours or material cost. Choices A, C, and D are all valid reasons why assigning manufacturing overhead to a specific job is complicated.

Assigning Manufacturing Overhead to a Specific Job Is Complicated by All