One reason annual overhead application rates are used is
A)because of seasonal variability of overhead costs.
B)to help budget overhead costs.
C)to minimize the overhead cost assigned to products.
D)to maximize the overhead cost assigned to products.

Question

Quizplus · Accepted Answer

Annual overhead application rates are used to smooth out the effects of seasonal variability in overhead costs, providing a more consistent and predictable rate throughout the year.

One Reason Annual Overhead Application Rates Are Used Is