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Actual Manufacturing Costs
The total expenses directly incurred in the production of goods, including labor, materials, and overhead costs.
Underapplied Overhead
A situation where the allocated overhead costs are less than the actual overhead costs incurred, resulting in a deficit in the cost of goods sold.
Actual Overhead
The real incurred costs relating to overhead during a specified accounting period, which could vary from budgeted or standard overhead costs.
Applied Manufacturing Overhead
The allocation of manufacturing overhead costs to individual units of production, based on a predetermined rate or basis.
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