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Drawbacks of Using Actual Overhead vs. Applied Overhead

MGRACT-KBUSHU

What is one of the drawbacks of Using Actual Overhead vs. Applied Overhead in Determining Product Costs?

A

Actual overhead will be higher than applied overhead, leading to higher costs per unit.

B

Actual overhead will be known prior to applied overhead, leading managers to want to use it.

C

Actual overhead can cause fluctuating costs per unit from natural variations in monthly costs.

D

Actual overhead can hide variations in per unit costs that would help managers find unusual costs.