What Is the Best Way to Handle Manufacturing Overhead Costs

question 118

Multiple Choice

What is the best way to handle manufacturing overhead costs in order to get the most timely job cost information?

• A)The company should account for only the direct production costs.
• B)The company should apply overhead using an estimated rate throughout the year.
• C)The company should add actual manufacturing overhead costs to jobs as soon as the overhead costs are incurred.
• D)The company should determine an allocation rate as soon as the actual costs are known, and then apply manufacturing overhead to jobs.

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