MC 24 What is the difference between actual overhead and applied overhead?
A. Actual overhead is the amount of overhead allocated to a specific product, while applied overhead is the actual amount of overhead incurred.
B. Actual overhead is the amount of overhead incurred, while applied overhead is the amount of overhead allocated to a specific product.
C. Actual overhead and applied overhead are the same thing.
D. Actual overhead is a fixed cost, while applied overhead is a variable cost.
Answer:B
MC 24 What is the difference between actual overhead and applied overhead?
A. Actual overhead is the amount of overhead allocated to a specific product, while applied overhead is the actual amount of overhead incurred. B. Actual overhead is the amount of overhead incurred, while applied overhead is the amount of overhead allocated to a specific product. C. Actual overhead and applied overhead are the same thing. D. Actual overhead is a fixed cost, while applied overhead is a variable cost.
Explanation: Actual overhead is the amount of overhead costs that were actually incurred during a specific period, while applied overhead is the amount of overhead costs allocated to a specific product based on the predetermined overhead rate.