When actual overhead costs are not known until the end of the month, an estimated overhead application rate should be determined so that the total weekly costs can be applied.

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Kenyatta Huston · Accepted Answer

Final Answer : True, Explanation :  Using an estimated overhead application rate allows a company to allocate overhead costs to products or projects on a consistent basis throughout the month, even when actual overhead costs are not yet known, facilitating more timely and accurate cost tracking and decision-making.

When actual overhead costs are not known until the end of the month, an estimated overhead application rate should be determined so that the total weekly costs can be applied.

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