Why do companies use a predetermined overhead rate rather than an actual overhead rate?
… Applied overhead stands in contrast to general overhead, which is an indirect overhead, such as utilities, salaries, or rent. However, allocating more overhead costs to a job produced in the winter compared to one produced in the summer may serve no useful purpose. The manufacturing overhead account is classified as a clearing accountAn account […]
Why do companies use a predetermined overhead rate rather than an actual overhead rate? Leer más »