Determining how much manufacturing overhead is overallocated or underallocated is done

Name: Determining how much manufacturing overhead is overallocated or underallocated is done
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The determination of overallocated or underallocated manufacturing overhead is done at the end of the period, after all actual costs and overheads have been incurred and recorded. This is when the actual amount of overhead incurred can be compared to the amount allocated to the production costs using predetermined rates.

Determining How Much Manufacturing Overhead Is Overallocated or Underallocated Is