Question

Actual overhead costs may not be proportional to the actual amount of the allocation base used because Blank______.



Multiple select question.

overhead costs are all variable costs


many actual overhead costs are fixed


overhead spending may not be under control


actual costs may be proportional to the actual use of the allocation base

Answer 1

The correct answers for the statement "Actual overhead costs may not be proportional to the actual amount of the allocation base used because" would be:

- **many actual overhead costs are fixed**
- **overhead spending may not be under control**

These options reflect the idea that fixed overhead costs do not change with the level of production or allocation base, and that overhead spending can vary due to factors such as inefficiencies or uncontrolled expenses, leading to a lack of proportionality between overhead costs and the allocation base used.

The other options are incorrect because:

- **overhead costs are all variable costs** is not true as there are fixed overhead costs.
- **actual costs may be proportional to the actual use of the allocation base** contradicts the original statement, as this would imply they are proportional when the question states they may not be.

So, the correct selections are the second and third options.