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 proration approach involves calculating a predetermined overhead rate at the beginning of the period and then allocating overhead costs based on actual usage. If there is underallocated or overallocated overhead, it is spread among ending work-in-process, finished goods, and cost of goods sold using the proration approach. Option A is not correct as the adjusted allocation rate approach involves adjusting the predetermined overhead rate at the end of the period. Option B is incorrect as the write-off of cost of goods sold approach refers to writing off the entire amount of overallocated overhead to cost of goods sold. Option D is not correct as one of the options is correct.

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