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Which of the following is not a reason to allocate overhead? Allocation is more accurate than tracing items directly to jobs. Unlike direct materials and
Which of the following is not a reason to allocate overhead?
Allocation is more accurate than tracing items directly to jobs.
Unlike direct materials and direct labor, the amount of overhead actually incurred may not be known at the time a job is being worked on.
Manufacturing overhead is an indirect cost that cannot be physically or economically traced back to a specific item.
Some overhead costs are seasonal, and should be spread over production for the entire year.
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