Debits in the factory overhead account represent the actual overhead costs incurred.

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Quizplus · Accepted Answer

Debits in the factory overhead account represent the actual overhead costs incurred. This is because the factory overhead account is used to accumulate all indirect costs incurred in the production process, such as rent, utilities, and indirect labor. Debits in the factory overhead account increase the account balance, which represents the total actual overhead costs incurred during a given period.

Debits in the Factory Overhead Account Represent the Actual Overhead