Question

Why aren't actual overhead costs traced to jobs just as direct materials and direct labor costs are traced to jobs? Give examples

Answer 1

--Overhead cost cannot be traced to jobs because these overhead cost cannot be identified with the job unlike direct costs.

--For example, direct material cost which is a direct cost used to produce a Job can be identified to that particular job.
Overhead cost, for example, Factory Rent is paid, then it cannot be identified to a particular Job,because there can be many Jobs being carried in that Factory.
Other examples of overhead cost = Factory Insurance, Factory Equipment depreciation, etc.