D is corrent because factory overhead is averaged over production in both job-order costing and process costing. Because the actual costs associated with factory overhead are generally not known until after the accounting period, a predetermined overhead rate is calculated based on an estimate of overhead cost. This rate is then used to apply overhead to production for both job-order costing and process costing. The difference between the two methods is that job-order costing allocates the applied overhead to the number of units in each job (generally a small number of units) while process costing allocates overhead to the number units in each processing center (generally a much larger number of units).
A is incorrect because factory overhead is also averaged in process costing.
B is incorrect because factory overhead is also averaged in job-order costing.
C is incorrect because factory overhead is averaged in both methods.
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