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Underapplied Manufacturing Overhead
The situation where the allocated manufacturing overhead costs are less than the actual costs incurred.
Overapplied Manufacturing Overhead
The condition where the allocated manufacturing overhead costs exceed the actual overhead expenses incurred during a period.
Manufacturing Overhead Account
An accounting term referring to all indirect costs associated with manufacturing a product, such as utilities, depreciation, and salary of indirect labor.
Direct Labor
Labor costs that are directly attributable to the production of goods or services, such as wages for workers manufacturing a product.
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