Final answer:
In job costing, actual overhead costs are generally not assigned directly to jobs; rather, a predetermined overhead rate based on estimates is used to apply these costs. This method provides consistency and timeliness compared to the application of actual overhead, which can be imprecise.
Step-by-step explanation:
In a job costing system, actual overhead costs are typically not assigned directly to jobs. Instead, most companies use a predetermined overhead rate to apply overhead to jobs. This rate is based on estimates made at the beginning of the accounting period and is applied to the actual amount of the allocation base incurred by the job.
There are instances where a company might use actual overhead costs; however, because of the variability and timing of overhead costs, applying actual overhead to jobs can be imprecise and often leads to over- or under-application. Therefore, the predetermined overhead rate method is generally preferred as it allows for more consistent and timely assignment of overhead costs to jobs during the period.