If the amount of over or under applied overhead is material it should be allocated on a pro rata basis to work in process, finished goods and raw materials.

Name: If the amount of over or under applied overhead is material it should be allocated on a pro rata basis to work in process, finished goods and raw materials.
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Question

Quizplus · Accepted Answer

The correct allocation for material amounts of over or under applied overhead is to work in process, finished goods, and cost of goods sold, not raw materials.

If the Amount of Over or Under Applied Overhead Is