Final answer:
Actual manufacturing overhead costs are included in the Manufacturing Overhead Control account, which reflects the actual amount spent by a company on overhead expenses.
Step-by-step explanation:
Actual manufacturing overhead costs are recorded in the Manufacturing Overhead Control account. Overhead costs consist of expenses that are not directly tied to a specific product but are necessary for the production process, such as factory rent, utilities, and equipment depreciation. These are real costs incurred by a company and are documented as they occur, reflecting the actual amount spent rather than budgeted or allocated costs.
These actual overhead costs are not immediately recorded in the Work-in-Process Control account or Finished Goods Control account. Instead, they are applied to these accounts based on a predetermined overhead rate, which allocates the overhead costs based on direct labor hours, machine hours, or any other allocation base chosen by the company. Therefore, the correct answer to the question is C) Manufacturing Overhead Control account.