If the overhead rate is computed annually based on the actual costs and activity for the year, the manufacturing overhead assigned to any particular job can be computed as soon as the job is completed.

Question

Quizplus · Accepted Answer

The overhead rate computed annually based on actual costs and activity for the year can only be accurately determined after the year ends, making it impossible to compute the exact manufacturing overhead for a particular job immediately upon its completion.

If the Overhead Rate Is Computed Annually Based on the Actual