Examlex
What is needed for the contraction cycle to continue?
Direct Materials
The raw materials that are directly used in the manufacturing of a product, which are easily traceable to the finished product.
Additional Manufacturing Overhead
Costs incurred in the manufacturing process that are above the initially budgeted or standard manufacturing overhead costs.
Underapplied
Underapplied refers to a situation where the allocated or estimated costs for a particular period are less than the actual costs incurred.
Overapplied
A situation where the allocated overhead costs for production exceed the actual overhead expenses incurred.
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