In process costing the Manufacturing Overhead account is credited with actual manufacturing overhead costs.

Question

Quizplus · Accepted Answer

In process costing, the Manufacturing Overhead account is credited with an estimated amount of manufacturing overhead costs based on a predetermined overhead rate, not with actual costs. This is because it is difficult and time-consuming to trace actual overhead costs to each unit of product as they are incurred.

In Process Costing the Manufacturing Overhead Account Is Credited with Actual