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Overapplied
Refers to a situation where the amount of overhead allocated to products or jobs is more than the actual overhead incurred.
Underapplied
Underapplied refers to a situation where the allocated costs are less than the actual costs incurred, often relating to overhead in manufacturing.
Direct Labor-Hours
A measure of the amount of time workers spend on production, often used as a basis for allocating overhead costs in traditional costing systems.
Applies Overhead
Refers to the method by which manufacturing overhead costs are assigned to products or job orders based on a predetermined rate or basis.
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