Asked by sin lung leung on Jul 27, 2024
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Overapplied overhead is the amount by which overhead applied to jobs using the predetermined overhead rate exceeds the actual overhead incurred during a period.
Overapplied Overhead
A situation where the actual manufacturing overhead costs are less than the overhead allocated to products during a specific period.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products or job orders, estimated before the costs are actually incurred.
Actual Overhead
The real costs incurred for overhead in manufacturing or providing services, as opposed to budgeted or estimated overhead.
- Achieve familiarity with the technique of applying overhead costs, along with dealing with overapplied and underapplied overhead amounts.
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Learning Objectives
- Achieve familiarity with the technique of applying overhead costs, along with dealing with overapplied and underapplied overhead amounts.
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