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In the demand model, the endogenous variable is:
Overapplied
A situation where the overhead allocated to products is greater than the actual overhead incurred.
Underapplied
A situation where the allocated amount of manufacturing overhead costs is less than the actual overhead costs incurred.
Manufacturing Overhead
Costs related to the manufacturing process but not directly traceable to specific units produced, such as utility costs and salaries of maintenance personnel.
Overhead Variances
Differences between the estimated and actual overhead costs in manufacturing or business operations.
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