Allocated overhead generally does not accurately measure a job's overhead resources.

Question

Quizplus · Accepted Answer

Allocated overhead is determined by using a predetermined overhead rate and assigning it to a specific job based on the estimated amount of resources the job will use. However, actual overhead may differ from allocated overhead, leading to inaccurate measurements. Actual overhead can only be determined after the job is completed and all actual costs have been recorded.

Allocated Overhead Generally Does Not Accurately Measure a Job's Overhead