Asked by

Maryam Atique
on Dec 16, 2024

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The manufacturing overhead for the year is underapplied or overapplied by:

A) ($30,900) .
B) ($15,450) .
C) $15,450.
D) $30,900.

Overapplied

A situation where the allocated overhead costs exceed the actual overhead costs incurred.

Manufacturing Overhead

Expenses related to manufacturing that cannot be directly tied to a specific product, such as salaries of supervisors and equipment depreciation.

Underapplied

A situation where the allocated or applied costs in accounting are less than the actual costs incurred.

  • Figure out activity rates and allocate overhead costs to products via Activity-Based Costing.
  • Analyze the consequences of over or under allocating manufacturing overhead costs on financial statements.
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CS
Crystal SookhaiDec 21, 2024
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