Question

Using normal costing, which of the following is false about actual overhead?Select one:a. It is separated into many smaller accounts, such as indirect labor, supplies, etc.b. None of these.c. It is reconciled at the end of a period with applied overhead.d. Actual overhead is recorded to the overhead control account during the period.e. All of these are correct.

Answer 1

d. Actual overhead is recorded to the overhead control account during the period.

Step-by-step explanation:

Actual overhead -

It is the indirect cost of the factory which have been incurred .

The example of actual overhead costs are as follows -

Factory depreciation , Equipment maintenance , Factory rent , Production supplies , Factory property taxes , Production supervisor salaries

hence , from the given options , the false statement is ( d ) .