An equal amount of manufacturing overhead should be allocated to each job.

Name: An equal amount of manufacturing overhead should be allocated to each job.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Allocating an equal amount of manufacturing overhead to each job is not an accurate way of assigning costs. Manufacturing overhead costs should be allocated based on the actual usage of resources such as machine hours or direct labor hours. Allocating costs equally can result in overestimating or underestimating the actual cost of a job.

An Equal Amount of Manufacturing Overhead Should Be Allocated to Each