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What is the result when a company applies less overhead to production than it actually incurs?2-12 When a company applied less overhead to production than it actually incurs, it creates what is known as underapplied overhead. When it applies more overhead to production than it actually incurs, it results in overapplied overhead. 2-13 A plantwide overhead rate is a single overhead rate used throughout a plant.
What term is defined as a factor that causes overhead costs?A cost driver is a factor that causes overhead costs.
What is the adjustment for over applied overhead?Adjusting Manufacturing Overhead with the Proration Method
Adjusts over- or under-applied overhead by spreading it out into: cost of goods sold, finished goods and work in process. When overhead is over-applied, the adjustment decreases overhead, cost of goods sold, finished goods and work in process.
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What is the term used when a company applies less overhead to production than it actually incurs quizlet?
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