Underapplied and Overapplied Overhead Arise Because

question 98

Multiple Choice

Underapplied and overapplied overhead arise because:

• A) The actual amount of overhead costs are known at the beginning of the period
• B) An estimate of production volume is used for the denominator quantity
• C) The actual production volume is known at the beginning of the period
• D) Estimates of direct materials costs are used