Examlex
Explain two strategies for encouraging compliance.Give examples of how to use each strategy effectively.
Factory Overhead
Factory overhead encompasses all indirect costs associated with manufacturing, such as utilities, maintenance, and management salaries, not directly tied to the production of goods.
Machine Hours
A measure of the total time that a machine or set of machines has been operating, often used to allocate factory overhead costs.
Underapplied
In costing, this term refers to a situation where the overhead allocated to products or services is less than the actual overhead incurred.
Overapplied
A situation where the allocated or applied overhead costs exceed the actual overhead expenses incurred.
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