Under- or overapplied overhead represents the difference between actual overhead costs and applied overhead costs

Name: Under- or overapplied overhead represents the difference between actual overhead costs and applied overhead costs
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Under- or overapplied overhead is calculated as the difference between actual overhead costs and applied overhead costs. To close the balance in Manufacturing Overhead to the appropriate accounts, a journal entry must be prepared.

Under- or Overapplied Overhead Represents the Difference Between Actual Overhead