Predetermined manufacturing overhead rates can be used in all of the following costing systems except:

Question

Quizplus · Accepted Answer

Predetermined manufacturing overhead rates are used to allocate overhead costs to products or services. This allocation method is commonly used in job costing, process costing, and operations costing. However, actual costing uses the actual overhead costs incurred during the period, so a predetermined rate is not used. Therefore, predetermined manufacturing overhead rates cannot be used in actual costing.

Predetermined Manufacturing Overhead Rates Can Be Used in All of the Following