The spreading of underallocated or overallocated overhead among ending work-in-process, finished goods, and cost of goods sold is called:

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The spreading of underallocated or overallocated overhead among ending work-in-process, finished goods, and cost of goods sold is called the proration approach. This method involves dividing the total amount of underallocated or overallocated overhead by the total amount of cost in work-in-process, finished goods, and cost of goods sold, and then multiplying that percentage by the cost in each of these categories.

The Spreading of Underallocated or Overallocated Overhead Among Ending Work-In-Process