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Manufacturing Overhead Applied
The charging of manufacturing overhead costs to units produced, usually based on a predetermined overhead rate, including costs not directly tied to production like rent and utilities.
Overapplied Overhead
Occurs when the allocated or applied overhead for a product exceeds the actual overhead expenses incurred.
Underapplied Overhead
Refers to the situation where the allocated amount of overhead costs in the cost accounting process is less than the actual overhead costs incurred.
Predetermined Overhead Rate
A rate used to allocate estimated indirect costs to individual units of production, based on a predetermined formula.
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