Causes for the difference between applied and actual overhead costs do NOT include ________.
A) different number of workdays in different months
B) price changes in individual overhead items
C) inefficient use of overhead items
D) repairs made on a regular, consistent basis

Question

Quizplus · Accepted Answer

Repairs made on a regular, consistent basis should not cause a difference between applied and actual overhead costs as they are already accounted for in the budgeted amounts. A, B, and C can be factors that contribute to the difference between applied and actual overhead costs.

Causes for the Difference Between Applied and Actual Overhead Costs