Answer: The correct option is letter A: Actual overhead costs are not assigned directly to jobs in normal costing.
Explanation:
Normal costing only includes components such as; the actual cost of materials, the actual cost of labor and manufacturing overhead (or standard overhead rate) .
Therefore, no actual overhead costs are assigned directly to jobs in normal costing.
We may confuse actual overhead costs and standard overhead costs but the difference that we can find between the standard overhead cost and the actual overhead cost is that you can either charge the difference to the cost of goods sold (for smaller variances) or prorate the difference between the cost of goods sold and inventory.
