1.
Concept introduction:
Over or under-applied
The predetermined overhead rate using estimated material used.
2.
Concept introduction:
Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.
To prepare: The T-account of factory overhead computes applied overhead using the predetermined overhead.
3.
Concept introduction:
Over or under-applied overheads: When budgeted overhead is more than the actual overhead, then it is called applied overheads. When budgeted overhead is less than the actual overhead, then it is called under-applied overhead.
To prepare: The
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