What is actual factory overhead?

Hi, rana hassan!

Actual factory overhead concering what, please?

If you provide more information, it's likely that someone knowledgeable will come along to help you.

Thanks!

It's as opposed to applied overhead.

The actual overhead is essentially exactly what it says: the actual overhead costs the company really did incur. i.e. they charged off 4200 to depreciation - that's actual. They got a utility bill for the factory - that's actual. Those are the costs they really had.

The overhead (following the method used in most textbooks anyway) is put into the Work in Process account based on a predetermined rate, rather than the actual costs.