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Manufacturing Overhead
All indirect costs associated with manufacturing a product, such as utilities, rent, and salaries for employees not directly involved in production.
T-Accounts
A simplified accounting tool that represents a ledger account and is used to understand the effects of transactions on account balances.
Underapplied Overhead
A situation where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.
Overapplied Overhead
A situation in accounting where the allocated manufacturing overhead costs are more than the actual overhead incurred.
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