Which of the following tasks succeeds the disposing under- or overapplied overhead?
A)Preparation of financial statements
B)Comparison of actual and allocated overhead amounts
C)Estimation of overhead costs
D)Establishment of predetermined overhead rate

Question

Quizplus · Accepted Answer

Disposing under- or overapplied overhead is the last step in the overhead application process. Once this is done, the actual overhead costs can be compared with the allocated overhead costs, and the financial statements can be prepared using accurate figures. Therefore, the task that succeeds disposing under- or overapplied overhead is the preparation of financial statements.

Which of the Following Tasks Succeeds the Disposing Under- or Overapplied