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A guideline for applying expectancy theory is to
Work in Process
Inventory items that are in the process of being transformed from raw materials into finished goods but are not yet complete.
Overapplied Manufacturing Overhead
A situation where the allocated amount for manufacturing overhead costs exceeds the actual amount incurred.
Manufacturing Costs
Expenses incurred in the process of producing goods, including direct materials, direct labor, and both fixed and variable manufacturing overhead.
Raw Materials
The basic materials that are used in the manufacturing process to produce goods, typically transformed or converted into finished products.
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