Which of the following is a characteristic of actual overhead using normal costing?
A)It is recorded to the overhead control account at the beginning of the period.
B)It is reconciled at the end of a period with applied overhead.
C)It is separated into many smaller accounts, such as indirect labour and supplies.
D)It is estimated easily at the beginning of the period.

Question

Quizplus · Accepted Answer

Actual overhead using normal costing is reconciled at the end of a period with applied overhead to determine the over- or under-applied overhead. It is not recorded at the beginning of the period, separated into smaller accounts, or easily estimated.

Which of the Following Is a Characteristic of Actual Overhead