When the amount of overhead applied differs from actual, if it is an insignificant dollar amount it is usually written off to

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If the amount of overhead applied differs from actual and it is an insignificant dollar amount, it is usually written off to Cost of Goods Sold. This is because it is not significant enough to affect the valuation of Work in Process Inventory or Finished Goods Inventory, and it is not related to a specific expense category that would fall under Miscellaneous Expense.

When the Amount of Overhead Applied Differs from Actual, If