If actual overhead is greater than applied overhead, the variance is called underapplied overhead.

Name: If actual overhead is greater than applied overhead, the variance is called underapplied overhead.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Underapplied overhead occurs when the actual overhead costs incurred are greater than the overhead costs applied to the production process. This results in a negative variance, meaning that the actual costs exceeded the estimated or budgeted costs.

If Actual Overhead Is Greater Than Applied Overhead, the Variance