Question

Actual overhead costs are not assigned to jobs in a job costing system. TRUE FALSE

Answer 1

Answer:

true

Explanation:

Under job costing the overheads are allocated on the basis of predetermined overhead rate and actual overhead is not allocated.

Answer 2

The statement is True.

• Overheads cannot be linked to specific jobs by definition.
• Most businesses utilise a fixed overhead rate rather than real overhead as -

1. A company's overhead costs are not frequently distributed evenly throughout the year.
2. Heating expenditures, for example, are higher in the winter.
3. Actual costs for direct materials and direct labor and estimated costs for overhead. Actual overhead costs are not allocated to individual jobs.