During February,Benke Manufacturing Company paid $18,000 in property taxes on one of its factory buildings.This overhead cost should be allocated to units completed during the month it was paid.

Question

Quizplus · Accepted Answer

Overhead costs like property taxes on a factory building should be allocated over the period they benefit, not just to the units completed in the month the cost was incurred. This ensures a more accurate reflection of production costs over time.

During February,Benke Manufacturing Company Paid $18,000 in Property Taxes on One