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Managerial Accounting: The Corners...
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Managerial Accounting: The Corners...
What is an overhead variance? How is it accounted for typically?
Define the term overhead variance and its treatment.
Overhead Variance:
The amount obtained when actual overhead is deducted from applied overhead is known as overhead variance. Overhead variance is calculated to find whether the overhead is overapplied or underapplied.
Typically, overhead variance is disposed of by adjusting cost of goods sold. The overhead variance can be either underapplied or overapplied...
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