Asked by Cassie Birth on Jun 12, 2024
Verified
Underapplied overhead is the amount by which overhead applied to jobs exceeds the actual overhead incurred during a period.
Applied Overhead
The amount of factory overhead costs allocated to individual units of production, based on a predetermined rate.
Actual Overhead
The real expenses incurred during a period for indirect costs, differing from budgeted or estimated overhead.
- Learn about the process of allocating overhead in cost accounting, focusing on the treatment strategies for overapplied and underapplied overhead.
Verified Answer
(T
(K12_HN) Tu Thi Minh HangJun 18, 2024
Final Answer :
False
Explanation :
Underapplied overhead is the amount by which overhead applied to jobs is less than the actual overhead incurred during a period. Overapplied overhead is the opposite, where applied overhead exceeds actual overhead.
Learning Objectives
- Learn about the process of allocating overhead in cost accounting, focusing on the treatment strategies for overapplied and underapplied overhead.
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