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Figure 3-3 In the accompanying figure, the worksheet in the Window is split at the orange double lines.
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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