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    rana hassan's Avatar
    rana hassan Posts: 1, Reputation: 1
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    #1

    Feb 10, 2010, 10:49 PM
    What is actual factory overhead?
    What is actual factory overhead?
    Clough's Avatar
    Clough Posts: 26,677, Reputation: 1649
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    #2

    Feb 11, 2010, 12:17 AM
    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!
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    Feb 12, 2010, 07:12 PM

    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.
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