If Applied Overhead Is Greater Than Actual Overhead It Is

question 47

True/False

If applied overhead is greater than actual overhead it is called overapplied overhead.

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Definitions:

Variable Selling

Costs that vary directly with the level of sales activity, such as commissions or shipping charges.

Administrative Expense

Expenses related to the general operation of a business, such as office supplies, management salaries, and utilities.

Fixed Selling

Costs that remain constant regardless of the volume of goods or services sold.

Direct Labor-Hours

The total hours worked by employees that are directly involved in the manufacturing process.