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Overhead Account
An accounting category used to record all indirect costs associated with the production process, such as utilities, rent, and administrative expenses.
Actual Overhead Cost
The actual expenses incurred for overhead in the manufacturing or production process, including costs related to indirect materials, labor, and other indirect expenses.
Overapplied Overhead
Occurs when the overhead assigned to products is more than the actual overhead costs incurred.
Charged to Production
Costs that are directly allocated to the production process, including raw materials, labor, and manufacturing overhead.
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